Greaves Electric Mobility (GEM), the electric mobility arm of Greaves Cotton Ltd, is planning to launch new EVs as the company expects penetration of electric two-wheelers to increase, while electric three-wheeler sales to bounce back.
The company is looking at introducing two new electric two-wheelers and three electric three-wheelers soon. In the two-wheeler segment, it is looking at launching high-speed scooters, the management said during a recent investor interaction. During the Q1 FY23 earnings call, Nagesh Basavanhalli, Executive Vice Chairman of Greaves Cotton Ltd, pointed out that GEM would target the electric two-wheeler category, priced in the range of ₹80,000-90,000.
GEM’s EV volumes continue to gather momentum with double-digit growth as its electric two-wheeler sales have been increasing from 10,000 units per quarter to 10,000 units per month. In Q1, its EV sales (including both E2W and E3W) grew 19 per cent to about 29,577 units as compared to Q4 FY22 volumes, while it ended FY22 with 62,000 units, an increase of 129 per cent.
The company can produce 20,000 vehicles a month on a single shift. The capacity can be increased further with more shifts based on the demand. The company has about 290 active dealers for the EV business with 120 plus dealers in the south, 60 in the west, 50 in north and 30 in the east.
GEM expects the electric scooter market to achieve 4-5 per cent penetration this fiscal, up from 1.69 per cent in FY22. The e-commerce segment is expected to drive the growth of the city speed e-scooters segment (>25 kph, <= 45 kph). Also, commuters in tier-1, -2 and -3 cities are expected to transition to electric scooters at the price of ICEs (110/125cc).
The electric 3-w market is anticipated to grow at double digits owing to the growing need for last-mile connectivity as these vehicles are seen as inexpensive and eco-friendly alternatives to diesel-powered cabs and taxis. The e-rickshaw market, currently 1.5 lakh units, is expected to grow to more than 2.5 lakh units this fiscal, according to the company.
GEM believes that its recent strategic partnership and investments from its partner Abdul Latif Jameel, a family-owned and diversified global investor, will speed up its EV business growth. Jameel has committed a total capital investment of up to $220 million, of which the first tranche of $150 million has been commissioned and will be used for expanded product development, manufacturing expansion, R&D activities, brand building etc. GEM has the option to draw the additional $70 million within 12 months should they want to.