Tsuyo Manufacturing, an Indian EV powertrain component maker, has signed a letter of intent with the Karnataka state government to build a new manufacturing facility for electric vehicle powertrain products.

The announcement, reported by Autocar Professional, establishes the supplier's intent to expand its production footprint in Karnataka, one of India's largest automotive manufacturing hubs and home to OEM operations from Toyota Kirloskar Motor and Volvo-Eicher commercial vehicle interests, among others. The LOI signals the company's next capacity move as India's electric vehicle supply chain scales.

The letter of intent is a preliminary instrument, not a confirmed investment agreement. It commits both parties to negotiate the terms under which Tsuyo would establish the facility — typically covering land allocation, incentives and state-level clearances — before a binding agreement and detailed capital plan follow. Neither the size of the planned investment nor the capacity of the proposed plant has been disclosed in the announcement.

Tsuyo Manufacturing supplies electric powertrain components to vehicle makers and operates in the tier-one supplier segment of India's EV value chain. A new dedicated facility would extend the company's ability to serve OEM programs as electrification volumes grow across two-wheeler, three-wheeler and passenger vehicle segments in India.

Karnataka has been courting EV and component manufacturers aggressively, positioning the state as a base for electrified vehicle production. An LOI with a powertrain specialist such as Tsuyo fits that strategy: state governments across India — Tamil Nadu, Gujarat, Maharashtra and Karnataka among them — have been competing for EV supply chain investment with land, subsidy and policy packages.

For a supplier announcement of this type, the key numbers — capital expenditure, production capacity, jobs created and commissioning timeline — remain to be confirmed. Industry practice in India suggests these details typically emerge when the LOI converts into a final investment agreement and the company files its expansion plans with regulators or announces them at a formal groundbreaking.

What to watch next: whether the LOI converts into a definitive agreement with a disclosed investment figure and site location within Karnataka, the timeline for construction and commissioning that follows, and which OEM programs the new facility would supply.