There has been a dramatic change in the competitive landscape of India’s two-wheeler electric vehicle (EV) market, with Bajaj Auto surpassing Ola Electric in December 2024 to become the dominant competitor. The government’s Vahan portal reports that Bajaj Auto’s market share in the two-wheeler electric vehicle segment increased by 3% in December 2024, hitting 25% from 22% in November. The market share of Ola Electric, on the other hand, dropped 5% from 24% to 19% in the past month.
Sales for Ola Electric fell from 29,196 units in November to 13,769 units in December, resulting in a decrease in market share from 24.7% to 18.78%. Regardless, the company maintained its position as the leader in annual sales, capturing 35.5% of the market for the year thanks to robust sales in March and July. Total sales for the corporation fell from 119,654 units in November to 73,316 units in December, marking a decrease from the previous month.
Other Players’s Performance in this Sector
Ather Energy’s market share increased by 3% in December from 11% in November, following Bajaj’s 3% gain. The market share of Hero MotoCorp fell sharply by 5% in December, from 6% in November, while that of TVS Auto was steady at 23%. The two-wheeler electric scooter market is seeing greater competition as businesses like TVS and Bajaj introduce more inexpensive and sophisticated models, putting Bhavish Aggarwal’s Ola Electric to the test. To tackle the severe competition, Ola Electric has planned that by April of 2025, it will be launching its own electric scooter batteries.
Every Player Floating New Ideas to Expand their Growth
Bajaj Auto has unveiled a new platform that boasts cutting-edge tech features and a 45% reduction in costs, both of which are projected to boost the company’s profit margins. With the I-Qube electric scooter, TVS Auto has increased its reach from 250 to 4,000 retailers, thereby expanding its reach. Important EV markets in North India, including Gujarat and Maharashtra, have been driving growth for Ather Energy.
Ola Reaches a Milestone of 4,000 Stores
Ola Electric announced on 26 December that it now has 4,000 stores nationwide, a four-fold increase from the 800 stores that were previously disclosed on December 2 of this month. In less than a month, the firm reported adding 3,200 additional stores to its current network.
The corporation stated that it was dedicated to promoting widespread EV adoption, which would allow for wider penetration into practically every town and tehsil in India, going beyond tier-1 and tier-2 cities. The business has now fulfilled its promise. Bhavish Aggarwal, chairman and managing director of Ola Electric, stated that this is a major turning point in India’s EV journey as the company extends its network to every city, town, and taluk.
Aggarwal added that Ola has entirely redesigned the EV buying and ownership experience with its recently launched stores that are also service centres, setting new standards with its “SavingsWalaScooter” campaign.
According to data from market intelligence platform Redseer, sales of electric vehicles (EVs) are expected to reach 22 million units by 2030, having grown rapidly from 0.8 million units in 2023.
In order to target this segment, on 27 November, Honda Motorcycle & Scooter India (HMSI) unveiled the Activa e, an electric variant of its well-known Activa scooter, and the QC1, a second model, marking the company’s official entry into the Indian EV two-wheeler market.
Honda Activa e Specifications
An internal permanent magnet synchronous electric motor with a peak output of 6 kW and a torque of 22 Nm powers the new Honda Activa e. According to Honda, it can reach a high speed of 80 km/h and sprint from 0 to 60 km/h in 7.3 seconds. There are three riding modes available for the Activa e: Econ, Standard, and Sport.
The two interchangeable Honda Mobile Power Pack e-batteries, created and managed by Honda Power Pack Energy India Pvt. Ltd., are the main attraction. According to Honda, both have a 1.5 kWh capacity and a 102 km range on a full charge. There are two versions of the Activa e: the Activa e and the Activa e: Honda RoadSync Duo. The latter has a 7.0-inch TFT screen and can link to the Honda RoadSync Duo app in real time.
In addition to having day and night settings that automatically adjust the screen’s brightness and readability based on ambient light, the infotainment system offers navigation. Toggle switches on the handlebar are used to control the TFT screen. All-LED lighting with “smiling” DRLs, a 12-inch diamond-cut alloy wheel, a level footboard, a strong grab rail, and a dual-tone seat are standard on both models.
Additionally, it comes with Honda’s H-Smart key, which has functions like Smart Start, Smart Safe, Smart Unlock, and Smart Find. Pearl Shallow Blue, Pearl Misty White, Pearl Serenity Blue, Matt Foggy Silver Metallic, and Pearl Igneous Black are the five colours that will be available for the scooter.
Honda QC1 Specifications
In contrast, the Honda QC1 will have a single, fixed 1.5 kWh battery pack that has an 80 km range. It takes 4 hours and 30 minutes to charge from 0% to 80%, and 6 hours and 50 minutes to fully charge. An in-wheel electric motor with a maximum torque of 77 Nm and a peak power rating of 1.8 kW is fitted to the QC1. This translates to a top speed of fifty kilometres per hour. Standard and Econ are its two riding modes, which modify power and efficiency according to the rider’s preferences.
A 330-watt off-board home charger with auto-cut technology for safety can be used to charge it at home. Additionally, it only has a 5.0-inch all-info LCD screen, as opposed to the TFT screen in the Activa e. In addition to 26 litres of under-seat storage, the QCI will have a USB Type-C plug.
Honda’s Narsapura factory in Karnataka, close to Bengaluru, will produce the Activa e and QC1. They will include three complimentary services for the first year and a three-year or 50,000-kilometer guarantee. For the first year, Honda will also provide complimentary roadside assistance.
The Revolutionary Swappable Battery Technology from Honda
There will be dedicated Honda Power Pack Exchanger e (swapping stations) spread around different cities where the Activa e’s swappable batteries can be swapped. According to Honda, this is already operational in Delhi and Bengaluru and will shortly begin operations in Mumbai as well.
According to Yogesh Mathur, Director, Sales and Marketing, Honda Motorcycle & Scooter India, the organisation is working to satisfy the wide range of demands of its clients with ACTIVA e’s swappable battery technology and QC1’s fixed battery setup in addition to the industry-leading hassle-free ownership experience.
With the addition of more than 10,000 electric vehicles (EVs) to its delivery fleet, e-commerce company Flipkart announced that it has reached a significant milestone. This is the outcome of EVs being gradually included in last-mile deliveries over the previous few years. The company announced that, as part of the Climate Group’s EV100 programme, it will transition to a completely electric logistics last-mile fleet by 2030.
Currently, Tier-I cities like Delhi, Bengaluru, Hyderabad, and Chennai are home to 75% of Flipkart’s electric fleet. Flipkart also revealed in August 2024 that EVs were completing more than 55% of its food orders. Additionally, it used its electric vehicle fleet to carry more than 16% of groceries to Tier-II and smaller cities, such as Lucknow, Sonipat, Ludhiana, Bhubaneswar, Malda, Hubli, and Vizag, during the 2024 festive season.
Driving Operational Excellence and Setting the Benchmark
Significant operational efficiencies have been achieved as a result of the strategic use of EVs. In comparison to traditional delivery trucks, it has reduced the cost per order at the hub level and increased the last-mile delivery speed by 20%.
Hemant Badri, senior vice president and group head of supply chain, customer experience, and re-commerce business at Flipkart Group, stated that the company is not only promoting operational excellence but also establishing a standard for sustainable practices in the industry at large by combining its growing EV fleet with significant investments in charging infrastructure.
To facilitate this sustainable shift, Flipkart is investing heavily in charging infrastructure in addition to growing its fleet of EVs. In order to promote broader EV adoption, the company has teamed up with the Adani Group to set up 38 specific charging locations with 190 chargers overall in important Tier-II cities. Additional public infrastructure improvements are also planned. In order to improve supply chain operations and grow the integration of electric vehicles, Flipkart has also launched a last-mile aggregate model in Karnataka, Telangana, and Tamil Nadu, working with fleet operators that are focused on EVs.
Company is Focusing on Strategic Partnership for Sustainable Growth
According to Nishant Gupta, head of sustainability at Flipkart, the company is well-positioned to reach a 100% last-mile electric fleet by 2030 thanks to its strategic partnership with the Climate Group’s EV100 initiative and cooperation with top original equipment manufacturers, EV service providers, charging infrastructure partners, financing bodies, and manpower sourcing agencies.
In an effort to reach its goal of having 10,000 electric vehicles for last-mile deliveries by 2025, Amazon India, another e-commerce company, has announced that it has partnered strategically with Gentari, an electric mobility company, for its EV deployment programme.
Car servicing startup Gomechanic is getting ready to roll out dedicated electric vehicle workshops across key metro cities in India, including Delhi, Mumbai, Chennai, Bengaluru, and Hyderabad, amongst others, in the near future. This venture is being undertaken with the intention of capitalising on the growing demand for electric vehicle servicing that is being driven by the rapid adoption of electric mobility in India.
Although the firm did not reveal the precise date of the launch, it did state that it intends to stage one hundred workshops centred on electric vehicles (EVs) by the end of the fiscal year 2024-25 and to double the number of workshops by the end of the fiscal year 2026.
GoMechanic Plans to Service 10,000 EVs by March 2025
Muskan Kakkarb, the cofounder of GoMechanic, noted that these workshops will be equipped with cutting-edge technology, such as real-time diagnostics, battery health monitoring, and AI-powered predictive maintenance. This will ensure that electric vehicle customers receive the greatest possible level of service.
Hinamshu Aroira, another cofounder, stated that the company’s objective is to not just broaden its service network but also to establish itself as a reliable partner for fleet operators and individual owners of electric vehicles. This will be accomplished by providing solutions that are both cost-effective and efficient, and they will be adapted exclusively for electric vehicles.
In December of the previous year, GoMechanic launched an electric vehicle (EV) service for fleet operators. This service was made possible through a partnership with MoEVing, a fleet operator that focusses on electric mobility. In the past, it has offered its services to key electric vehicle (EV) players such as BluSmart, MoEVing, Zypp Electric, and Evera in both their three-wheeler and four-wheeler markets.
Financial dynamics of GoMechanic
It is noteworthy that in March of the previous year, Lifelong Group’s Servizzy purchased GoMechanic after the company had been experiencing financial issues and was under inspection from authorities. The business has been trying to get its operations back on track ever since, and in the first quarter of FY25, it was able to produce an EBITDA profit. A revenue of INR 85 Cr was reportedly recorded by GoMechnanic during the first quarter of the current fiscal year, according to the company officials.
The company raised a healthy amount of $6 million in November 2023 through a round of funding that was led by an unidentified family office and also included involvement from other existing investors, including Stride Ventures. In addition, the car service company is increasing the number of product lines it offers. During the fiscal year 24 (FY24), it opened eleven Luxe boutiques that provided maintenance services for premium automobiles.
Everyone is salivating at the electric vehicle market pie in India! If the recent spate of investments is anything to go by, the EV segment is touted to be among the leading hero sectors driving India’s growth. However, stakeholders seek clarity and concrete policy initiatives from the government to make further inroads into the segment.
“Several factors contribute to the increasing investments in India’s electric vehicle (EV) segment. India boasts the world’s largest untapped market, particularly in the two-wheeler sector, presenting an enticing investment opportunity. Growing demand, driven by a young and affluent population eager to embrace new technologies, further fuels investment interest,” said Arindam Lahiri, chief executive officer of the Automotive Skills Development Council.
The 2022–23 Economic Survey tabled in Parliament in December last year had pegged EV sales at 1 crore and 5 crore jobs in the sector by 2030. Leading think-tank, the Centre for Energy Finance, expects India’s EV market to be $206 billion by 2030.
There is no denying that demand for EVs has been on the rise. According to the Ministry of Road Transport and Highways, electric vehicle purchases spiked by 51% year over year to 740,000 in April–September. This number is expected to cross a record of 1.5 million during the entire fiscal year.
StartupTalky takes a closer look at this demand, the reasons behind the rise in investments, and the roadblocks that need to be addressed.
Earlier this week, electric vehicle and appliance manufacturer–Wardwizard Innovations & Mobility said it would invest ₹2,000 crore for the development of an electric vehicle ancillary cluster in Gujarat. Other states are not too far behind. Karnataka is said to have received investments worth ₹25,000 crore so far in the EV and ancillary space, newspaper reports quoted a state minister as saying.
Earlier this year, British energy giant BP invested in EV delivery company Magenta and BluSmart Mobility, an EV-only ride-hailing company. Last year, global energy giant Shell backed the fund-raising exercise of Gurugram-based EV charging network company Statiq.
One of the reasons for this frenetic activity in the EV segment is because of the huge potential that India holds. S&P Global Ratings has pegged India’s EV penetration at 1.1%, a far cry from the 17.3% average in Asian countries.
Despite the investments in the EV and clean technology sectors, there is still a long way to go for demand to remain persistent, say venture capitalists and companies that StartupTalky spoke with. According to them, some key areas that need to be addressed in the EV segment include:
Charging Infrastructure
According to a report released by the Confederation of Indian Industries in June this year, India may need 1.32 million charging stations by 2030 to meet the government’s ambitious sustainability targets. As of January 2023, there were 5,254 charging stations in the country, as per data disclosed in the Lok Sabha by Union Minister RK Singh.
“India’s growing EV market penetration and battery development ambitions also introduce new barriers, including supply-chain worries related to the price and availability of semiconductors, metals and minerals, and battery cells, as well as concerns about insufficient charging infrastructure and electricity grid readiness,” a report by the International Institute of Sustainable Development said in August 2022.
Some state governments, such as Uttar Pradesh, have already started work on installing charging stations along five main express highways in the state.
Empowering Local Manufacturing & Research
Apart from improving infrastructure, incentives also need to be provided to component manufacturers and for R&D (research and development), analysts and corporations.
“In the last five to six years, funds have been going into battery manufacturing and battery technology companies, but that money is not there for the kind of R&D we need. It is slowly coming in. But the frugality with which Indians work is what we must leverage,” said Rohan Shravan, founding CEO of Tresa Motors, pointing to the higher cost of manufacturing.
Imported lithium batteries in EVs constitute around 50–60% of the cost of EVs, making them much costlier.
“The indigenous availability of the vehicles’ batteries and spare parts will also impact the consumer mindset and also the manufacturer’s mindset, as it will make it even cheaper for us to manufacture and sell,” said Kanchi Patel, director and co-founder of two-wheeler electric bike manufacturer Abzo Motors.
Co-founder of angel investing firm The Startup Capital–Aditya S. Kapur, however, feels looking out for newer innovative technology and incubating these ideas at home is far more important than just manufacturing.
“Our main concern is not to run our car on electricity. Our real problem statement is that we want a non-polluting automobile. We cannot call a car running on electricity completely clean. The whole process of innovation is completely linked to exploring. We need to give time to the stakeholders and allow them to explore things,” Kapur said.
Policy Push
Companies and investors are now looking to the government for easier policy regulations.
In 2015 and subsequently, in 2019, the government launched the Fast Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India. Under this initiative, buyers of EVs were incentivized by an upfront reduction in costs. However, owing to reports of malpractice, the government tweaked this initiative and reduced these incentives.
At present, the Department for Promotion of Industry and Internal Trade (DPIIT) is said to be working on a scheme to extend subsidiaries to electric four-wheeler makers based on the investments they make to manufacture locally, The Economic Times reported earlier this week.
Many stakeholders are also wary of putting their fingers into the EV pie as they are waiting for more concrete steps from the government.
“Till infrastructure is in place, heavy vehicles or large commercial vehicles are only bidding time, said Manas Pal, co-founder of Pedal Start, a Gurugram-based accelerator. He added, “The supporting component of this sector will play a very important role. Something on the charging stations, something on the battery development side, something on the battery manufacturing side, something on the battery recycling side, something on providing doles to people buying these commercial vehicles, something on the loan side will impact a lot,” Pal said.
Conclusion
The road to a pollution-free commute may seem like a long one, but at least the right noises have been initiated by stakeholders, including the government and investors. It, however, remains to be seen if India manages to hit a sweet spot in the EV sector. For now, this can be possible only with a concrete roadmap from the government, persistent corporate investments, and an ingenious sustainability model from think tanks.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Ample.
When it comes to widespread electric vehicle adoption, the concept of charging can’t be ignored. Are chargers produced in sufficient quantity? Will these chargers charge the cars fast enough?
Billions of dollars have been spent on producing batteries that can handle fast charges and chargers that can charge vehicles in less time. At least the United States is talking about battery swapping for cars and trucks.
Ample is among the few top-recognized startups involved in an energy-efficient battery-swapping business. In this article, you will uncover all about Ample, its products, startup story, founders, growth, funding, partners, investors, and more.
Ample is a United States-based company that offers an energy delivery solution that is as fast, convenient, and cheap as gas and powered by 100% renewable energy. This economical, rapidly deployable, and widely accessible platform delivers a full charge to different electric car models within a few minutes.
Ample serves customers worldwide in Japan, Europe, China, San Francisco, NYC, Chicago, Los Angeles, and other locations.
Ample – Industry
Ample is serving the battery-swapping market where companies provide services letting electric vehicle (EV) owners exchange depleted batteries with fully charged ones at specialized stations. The global market size of the battery-swapping industry is projected to grow from $210 million in 2022 to $1,664.44 million by 2032, with a CAGR of 23% during this period.
The idea of battery swapping gained renewed interest recently due to governments and car manufacturers pushing for EV adoption. Apart from Ample, Better Place, Tesla, Amara Raja, Numocity, BattSwap Inc., and Sun Mobility are some key players in the battery-swapping industry.
Ample – Founders and Team
John de Souza and Khaled Hassounah founded Ample in 2014.
John de Souza
John de Souza completed SB & SM in EECS from Massachusetts Institute of Technology and an MBA in Finance from College des Ingenieurs. He has been a Board member at Health eVillages. At present, he is the Dignity Health Foundation Board Member at Dignity Health.
In addition, he holds the role of Global Leadership Council Member at Boston University of School of Public Health and Advisory Board Member at Tivity Health. John is the founder and President of Ample Inc.
John de Souza – Co-founder and President, Ample
Khaled Hassounah
Khaled Hassounah graduated with a B.Sc. in Electrical and Electronics Engineering from the University of Jordan. He worked as Principal Software Architect at One World Software Solutions and Director of Engineering at IMlogic Inc. Moreover, he has been the Director of the Middle East and Africa at One Laptop Per Child.
In addition to co-founding Ample Inc., he co-founded MedHelp and remained Board Director at KarmSolar. Currently, he is working as Ample’s CEO.
Khaled Hassounah – Co-founder and CEO, Ample
Ample is a team of over 150 technologists, designers, and environmental enthusiasts from 24 different countries speaking 14 different languages.
Ample – Startup Story
Ample is a startup that rose from the ashes of its unsuccessful predecessor, Better Place. When electric vehicles had an ‘uninspiring’ range a few years ago, many companies toyed with the idea of equipping cars with swappable battery packs. It’s when Shai Agassi started a business called Better Place to revolutionize the nascent electric vehicle market. However, by 2013 the company went bankrupt.
After some time, John de Souza and Khaled Hassounah thought of reviving the battery-swapping business model and came up with the company named Ample. The company introduced an electric vehicle charging system. Moreover, it quickly deploys robots to replace small modular battery packs in electric cars. Unlike Batter Place, which used to build expensive battery stations, Ample created stations built in a space with two parking spaces’ width.
In 2021, Ample worked with five OEMs and validated its approach to battery swapping with nine different car models. In addition, the company supported level one and level two charging options. The company completed 2.4 million+ battery swaps for Chinese drivers in May 2021.
Ample aims to solve the energy delivery challenge for electric transportation with autonomous robotics and smart-battery technology. Its mission is to make it possible for every individual to have ‘Electric Cras for Everyone.’
Ample – Business Model
Ample’s concept is straightforward, i.e., instead of pulling up an EV to a charging station to get more power, the enterprise proposes the idea of installing Ample’s modular battery packs in the vehicles, which can be swapped out at specific stations.
Ample produces future-proof modular batteries that can adapt to any EV. These EV batteries are made of Lego-like battery modules that are flexible enough to accommodate any make, design, model, or driving profile.
Moreover, a combination of computer vision and secure wireless communication with the automobile is used by Ample Station to identify the exact location of each battery module that is to be swapped. The discharged battery modules are removed from the vehicle and charged again to use in the next car.
Ample – Revenue Model
Ample generates revenue by producing, deploying, and installing energy-efficient EV modular batteries and providing access to its battery swapping stations.
Ample – Products and Services
Ample provides EV modular batteries for cars and trucks of varied make and models and battery swapping stations. Moreover, the company offers Ample App to the drivers of its partner fleets.
Ample – Challenges Faced
Ample’s battery charging system is unlikely to succeed as a consumer-focused system but could make sense for only commercial vehicles.
Ample – Funding and Investors
Ample has undertaken 5 funding rounds to raise $290.7 million. Its latest funding round – Grant Round, was conducted on February 28, 2023, and raised $15 million. 15 investors fund Ample; the main ones are Blackstone Group, Moore Strategic Ventures, and Shell Ventures.
Date
Round
Number of Investors
Money Raised
Lead Investor
February 28, 2023
Grant
–
$15 million
–
November 10, 2021
Private Equity Round
2
$50 million
Blackstone Group
August 19, 2021
Series C
8
$160 million
Moore Strategic Ventures
February 13, 2020
Series B
–
$34.7 million
–
August 6, 2018
Series A
8
$31 million
Shell Ventures
Ample – Patents and Trademarks
Ample is registered with 4 patents, primarily categorized into the ‘Vehicles In General’ class. In addition, the company has 3 registered trademarks, and ‘Machines and Machine Tools’ is the most popular class.
Ample – Growth
The estimated annual revenue of Ample was $71.9 million per year ($463,703 per employee), with a $890 million valuation in August 2021. Moreover, the monthly web visits grew by 47.96%, with 32,623 visits. And its employee count elevated by 50% last year.
Introducing Ample: A New Way to Deliver Energy to Any Electric Vehicle
Ample and Uber plans to extend their partnership to Europe to electrify half the rides booked across seven European capitals, including Amsterdam, Paris, London, Berlin, Madrid, and Lisbon, by 2025.
FAQs
What does Ample do?
Ample offers an energy delivery solution that is as fast, convenient, and cheap as gas and powered by 100% renewable energy. This economical, rapidly deployable, and widely accessible platform delivers a full charge to different electric car models within a few minutes.
Who are the founders of Ample?
John de Souza and Khaled Hassounah founded Ample in 2014.
The world is moving really fast. It was never in history that we had the luxury to learn about anything in the world from the comfort of our homes. The information that we deal with (on a daily basis) is immense. All of this just doesn’t come up out of the blue, it has a price that we pay every day. The price is some of the other natural resources or some non-replenishable resource. But now the world is witnessing the shift. The shift from non-sustainable methods of human activities to more sustainable methods.
One of the pioneers of such a transition is EVs. It is an acronym for Electric Vehicles. It is forecasted that these cars (or vehicles) will be the future of not just public transport but will be the future of private transportation as well. With that being said, everyone is trying to get into the business of EVs. Every other car manufacturer is making their cars electric.
In an immensely population-dense country, India, the sector is getting ready to launch. Top-notch companies are planning to disrupt this market with some innovation. Except for one carmaker, Maruti Suzuki. The largest carmaker in India will refrain from entering the electric vehicles market in India. This article talks about what are (and could) be the reasons for such waste of potential.
Maruti Suzuki Plans about launching EV in the Indian Market
First, let us give you some context. It has been reported that the country’s largest carmaker, Maruti Suzuki has plans that they will not enter the electric vehicles markets in the short term. This trend of refraining will continue till the market is feasible. Chairman R C Bhargava told shareholders at the company’s 40th annual general meeting.
Yes, this news surfaced all over the internet. It shook not only the investors but people who had hopes for the company to launch EV. Adding to the news, RC Bhargava, the chairman, told the investors and shareholders that the carmaker has no plans to enter the EV market in the short term. They will only enter the market when the market will show some feasibility in the future. This was seen as the main highlight of the 40th annual general meeting that was held last year.
Adding to the notion of not entering the EV Market, Bhargava said the government’s focus is on developing the two-wheelers with the primary goal of electrification.
In the product segment of two-wheelers, Hero and Ola have been innovating. We all know that Hero is trying its best to enter the electric vehicle market and on the other hand it is developing infrastructure for charging electric vehicles.
Ola, the ride-sharing and taxi service startup is also looking forward to an electric future, so much so that they recently launched their product called the “Ola Electric”. Ola electric is a two-wheeler that runs on electricity. Thus, apart from the product segments of the two-wheeler category, remains the passenger vehicle segment. This is the primary market of Maruti Suzuki and they are quite unaffected by the newborn electric vehicles in this segment.
Bhargava added that they know that the sale volume is minimal and it is not in much of a magnitude. This easily predicts that folks at Maruti Suzuki are trying to play it safe rather than just jump on what is the hottest trend in the market right now.
In the passenger vehicles segment, a few manufacturers have brought EVs, “but the sales volume is minimal, and it has had no impact on the market share of Maruti Suzuki,” Bhargava said.
Annual EV Sales in India
Another fact that is baffling the EV enthusiasts is that other vehicle makers like Tata Motors, Mahindra and Mahindra are already running fast in the EV race.
Tata Nexon EV
They are so much into Electric vehicles that they have already manufactured a little over a dozen battery-powered vehicles. That trend in those carmakers can be seen among various product segments.
They are even forecasted to be more active in the market in the short future. Up till 2025, they will lead the Indian Electric Vehicles market by much more than the then-newcomer in the EV market, Maruti Suzuki.
Why is Maruti Suzuki Refraining from the EV Market?
When asked why the country’s topmost car maker is refraining from the EV market they replied with a rather satisfactory answer. Bhargava mentioned that Maruti Suzuki is currently planning to focus on the Electric vehicle segment, without making a loss on its basic and natural operating cycle. This was what he replied when investors enquired about the Electric vehicle segment.
In response to queries from several shareholders, Bhargava said Maruti Suzuki is looking at the electric vehicle (EV) segment without making a loss on operations.
“Maruti Suzuki is the leader in the passenger vehicle industry, and it fully intends to have leadership in EVs. But to be sure, Maruti Suzuki’s focus in the short term is CNG and hybrid vehicles – until the time EVs reach a certain scale. On its part, the company’s sister arm – Suzuki – and Denso and Toshiba, have already started working on localization of lithium-ion cells and engaging with the vendor fraternity to have a deeper localization to deliver an EV “that is accessible and delivers enough scale to add to the bottom line.” he added
After the statements by Maruti’s Chairman, one thing is clear that Maruti Suzuki has hopes for electric vehicles, but it doesn’t want to just jump right into the trend. It is waiting for a little more stabilised market in the Electric vehicle market and until then, Maruti is cleansing the company to better fit the EV market in the future. It is not scared of the innovations but just doesn’t want to regret any early investments. After all, it is such a big organisation and also holds a lot of expectations.
When will Maruti Suzuki Enter the Indian EV Market?
Suzuki’s parent company had said an India special EV might be ready by 2025. Regarding issues related to climate change, zero-emission and carbon neutrality, India has to follow its own schedule and not be pressured by the timelines set by more developed nations in the world, the chairman asserted.
“Yes, we must work with the rest of the world, we must be concerned about climate change, we must go on to reduce emissions. But we and the world have both to recognise the disparities in income and living styles and the disparity in the consumption of energy per capita in the developed world and India,” Bhargava answered.
The company will be launching an all-new sports utility vehicle next year to expand its footprint in the fast-growing segment in the mainstream market. The development work on the vehicle is underway, which will be introduced shortly. “Once we have the SUV next year, we will have more market share in that area”, he added.
It is clear from the above statements that the company clearly understands what the Indian user would want. It is true that the whole of India is not readily agreeing on shifting to electric vehicles and it will take some time. Until then Maruti plans to do more research and development on prospective investments.
Current Situation of Maruti Suzuki
If we look at the current situation in the product segment, we will find that Maruti Suzuki is the dominator of the vehicle segment. It has, in the local markets, very well accepted cars like that of Wagon R, Swift, Baleno, Vitara Brezza, Ertiga, XL6 and the S-cross. On the other hand, Hyundai (Korean rival) has made good growth in the SUV category.
Top Best-Selling Cars of December 2021
Separately, Bhargava said while Maruti Suzuki has faced some loss in production due to the shortage in availability of semiconductors, it is not of major concern. The current shortage of semiconductors facing the automobile industry is temporary, partly caused by the outbreak of the coronavirus pandemic and is expected to be over by 2022.
“Meanwhile, there has been a bit of a hit on the production of vehicles, and we have had to adjust, but there is no major loss that we have to be concerned about,” Bhargava said.
Bhargava has a thought process. That is, he thinks that India has to look after the citizens’ needs and wants. The only way to do that is to increase the lifestyle of individuals. They have to be better equipped with income to spend and live a decent life, this will create new demand for not just electric vehicles but everything else.
Not only this, he believes that this will also help in catching up with the rest of the world. The electronic vehicle is a concept that was first released in the outer boundaries of the world where technology is developed. They also enjoy a slightly better lifestyle than most Indians. EVs have to be tailor-made for Indians.
“It will require a much higher per capita energy consumption even if we adopt much more energy efficient means of consumption”. Bhargava pointed.
Bhargava further said: “And to do that we cannot follow everything which the West does. We have to make our own schedules and programmes and ensure that we do not adopt rules and regulations, which results in the people of India not being able ever to come up to the point of levels which they need to come up with to reduce (the gap) with the rest of the world.”
The above article points to the boundaries and the centre of the news piece that showed everyone. It is true that the homegrown vehicle maker Maruti Suzuki has hopes and aspirations for Electric scenes in India. But it surely does not want to do that in haste. Maruti has reported some slight losses due to manufacturing issues due to the unavailability of semiconductors. This however is not a big issue and they are getting better everyday. Maruti plans to be a little more stable in operations before they start investing in the Electric vehicle segment.
The news smoke came even when rival companies like Tata Motors and Mahindra and Mahindra had lined up a lot in the Electric vehicle domain. It is forecasted that up until 2025 they will launch some dozen more EVs for citizens.
To those queries, the officials have already answered the raised questions. Bhargava said Maruti Suzuki is looking at the electric vehicle (EV) segment without making a loss on operations. India is a special market for everything, not just in the segments of the electric vehicle.
One who understands the markets and the needs of Indian customers are set to rule the market. Maruti over the years have done really well in the passenger vehicle segments, and this is good proof of their understanding of the Indian scenario.
FAQ
Is Maruti coming with electric cars?
Yes, Maruti has plans to enter the Indian EV market in 2025.
What is the price of the Maruti electric car?
The Wagon R electric will be priced at 10 lakhs in India, which is slated to launch in 2025.
Why is Maruti not making electric cars?
Maruti Suzuki’s chairman, R C Bhargava stated in its annual general meeting that, They will only enter the market when the market will show some feasibility in the future.
The Chinese Smartphone company Xiaomi is reportedly planning to enter into the Electric Vehicle platform. The company which is involved in manufacturing consumer electronics is planning to invest into the Electric Vehicle Industry. Let’s look at this article to understand the plans of Xiaomi about its EV industry.
Xiaomi is a Chinese Multinational company which is headquartered in Beijing. The company was founded in the year 2010. Xiaomi makes and invests in smartphones, laptops, mobile apps, home appliances, bags, shoes, consumer electronics, accessories, and IoT devices.
Xiaomi is the fourth company to develop a mobile system on chip (SoC) capabilities after Apple, Samsung, and Huawei. Xiaomi is the fourth largest mobile manufacturing company in the world. The company has a leading position in the largest market which is China and the second largest market which is India.
Xiaomi planning to enter Electric Vehicle market
Xiaomi has plans to be part of the Electric Vehicle market. Xiaomi has confirmed its intention to invest $10 billion in its own subsidiary firm which is completely owned by Xiaomi. They had confirmed their intentions at the Mi MIX Fold Global Launch Event.
The initial investments according to the confirmation stand at CNY 10 billion. The founder and CEO Lei Jun is expected to lead the Electric Car project of the company for the time being. Xiaomi has not revealed any information about the products they plan to introduce or work on in the Electric Vehicle segment of the company.
There are no announcements regarding their projects and no information about the company’s launch plans. Xiaomi has said that they want to work on providing quality electric vehicles which would let everyone in the world to enjoy smart living anytime and anywhere.
Top selling light duty plug-in Electric vehicle global market
Xiaomi’s EV Investments
According to the report by Chinese media LatePost Xiaomi’s entry into the EV market to manufacture Electric cars was taken after considering it for years. They have also said that the company’s plans are just in the early stages and it might change in the future as well.
The report has also said that in the year 2018 Xiaomi had launched an early project in the electric vehicle segment called Mi car to explore the electric car making industry. It is said that the CEO of Xiaomi Lei Jun had visited Elon Musk who is the CEO of Tesla in 2013 twice.
Xiaomi has also made a mark in the Chinese Electric Vehicle segment by investing in Xpeng motors which delivered around 27,041 vehicles in the year 2020. They have also invested in NIO which is also a Chinese homegrown Electric Vehicle maker.
China’s Electric Vehicle market
China’s Electric Vehicle market has seen a significant growth in the recent years. It has attracted a lot of high-profile companies ranging from traditional automobile companies to internet companies.
According to a research by the China Association of Automobile Manufacturers, In the year 2020, the country saw an increase in the sales of EV which accounted for 1.37 million. There is an increase in the sales of up to 11% year-on-year.
China based automaker Greely auto has said that it is planning to focus more on to the Electric Vehicle segment. The founder and Chairman of the company Li Shufu have announced that the company has plans to shift 90 percent of its production to hybrid Electric vehicles and is also planning to set up a new factory for New Energy Vehicles.
The growth of the Chinese Electric Vehicle market has come after the multiple policy campaigns which are to promote carbon reduction which includes the plans to reach carbon neutrality by 2060.
Other Players in Electric vehicle market
Earlier, Huawei had announced its plans to enter into the manufacturing of Electric Vehicles. There were several speculations through various news reports which had suggested that the company had approached China’s Changan Automobile, BluePark New Energy Technology, and other players in the industry. Huawei has plans to concentrate on developing smart bits and to let the car manufacturers provide car parts.
From the western world, there has been a lot of rumors of Apple entering into the Electric Vehicle segment. It is said that the iPhone manufacturer is working on an electric vehicle of its own. The company is focusing on building the autonomous tech, battery, and the technical parts of the car and would require another partner from the automobile sector to work on the rest of the parts of the car.
FAQ
Which is the cheapest electric car?
Smart EQ Fortwo EV is one the cheapest electric car.
What are the 3 types of electric cars?
Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and Hybrid Electric Vehicles (HEVs) are the 3 types of electric cars.
Who is the CEO of Xiaomi?
Lei Jun is the current CEO of Xiaomi.
Conclusion
Compared to Apple and Huawei, Mi has still not announced any of its plans for its products or the launch. We will have to wait for any more news regarding the Chinese smartphone manufacturer’s entry into the Electric Vehicle Segment.
Nitin Konde
