With increased demand for electric two-wheelers due to a push for faster adoption of electric vehicles and high gasoline prices, a growing number of players are betting big on electrical two-wheeler manufacturing in Gujarat.
Odysse Electrical Autos Pvt Ltd, for example, opened an electrical two-wheeler plant in Changodar, Ahmedabad, in 2020, with a capacity of 24,000 units per year. Last year, it also introduced e-scooters.
Matter, an electric vehicle and technology startup, is constructing a manufacturing facility near Ahmedabad with a two-lakh-item annual capacity. The startup, founded by Mohal Lalbhai, a scion of the city’s Lalbhai Household, is preparing to launch an e-motorcycle in the first half of 2022. Svitch Power Private Limited, too, has recently chosen Gujarat for its electric vehicle facility.
Wardwizard Improvements & Mobility Ltd, a BSE-listed company that has been active in the electric vehicle space since 2016, opened a new two-wheeler manufacturing facility in Vadodara in January this year. The brand new plant, which was built by combining the corporate’s three meeting items, can now produce two.5 lakh items per shift each year.
According to EV manufacturers, government subsidies, increased customer awareness, and high gasoline and diesel prices have all contributed to the surge in demand for electric two-wheelers.
substantial subsidies on Electric two-wheeler purchases
“Electric vehicles have a bright future. Apart from high gasoline prices, central and state governments providing substantial subsidies on EV purchases have prompted an increase in the number of people opting for e-mobility,” said Yatin Gupte, chairman and managing director of Wardwizard Improvements and Mobility Ltd, which will open two more plants in the next six months. The first plant will be in south India, while the second will be in either north or east India.
“The demand for electric vehicles is much higher, and customers are ready for more products that cater to their specific needs.” There aren’t a lot of options in the EV section right now. As a result, we expect to see increased demand and a slew of new products in the coming years,” said Mohal Lalbhai, Founder and CEO of Matter, which plans to launch a variety of new products.
“The potential for electric two-wheelers appears to be enormous, and public acceptance is growing. “In 2020-21, the growth in electric two-wheelers was no less than 50-70 percent,” said Nemin Vora, CEO of Odysse Electrical Autos Pvt Ltd, which recently opened a new plant in Mumbai with a capacity of 36,000 units per year.
According to data compiled by the Federation of Vehicle Sellers’ Association, the sale of electric automobiles increased nearly 10-fold from 149 units in October 2020 to 1,621 units in the same month this year (FADA). Automobiles, two-wheelers, and three-wheelers were among them.
“There is no PLI (Manufacturing Linked Incentive) scheme for startups, which is a stumbling block for newcomers,” says the author. As a result, the federal government must make the scheme more inclusive for startups and provide sufficient incentives for it to thrive and meet the sector’s growing demand,” Lalbhai added.