Making Big Investments
A churn is already under way in India’s nascent but happening electric scooter market. Not only is the segment seeing a healthy 10 per cent month-on-month growth -- in June, the eight players currently in the field together sold 38,693 units, compared to 35,212 units they sold in May – the pecking order itself is in a state of flux.
In June, Okinawa Autotech topped the sales, beating better known names like Hero Electric and Ola Electric in monthly electric scooter sales. In fact, Ampere Vehicles was placed second above Hero and Ola. Okinawa, which was launched in 2015, is upbeat and making plans to expand operations, with an investment of Rs 1,200-1,500 crore, including setting up a 'mega factory' in Rajasthan.
“This mega factory will be spread across 30 acres of land and will provide employment to more than 5,000 people,” says Jeetender Sharma, Founder and Managing Director, Okinawa Autotech. The new plant will have an in-house automatic robotic battery manufacturing unit along with a motor and controller plant. The plant will be fully operational from October 2023. There will be robotic automation of plastic body parts moulding and a paint shop to facilitate the localisation in the production process, Sharma adds.
Going ahead, manufacturing of the entire range of scooters and motorcycles will be done in a joint venture with Italian EV manufacturer Tacita. All the units will now be catered to from the new plant.
“As the market leader in the electric two-wheeler segment, we are committed to addressing the most significant issues faced by the sector. The research and development facilities planned in the mega factory will be futuristic to ensure we meet the sector’s demand ahead,” says Sharma.
What has fuelled the company's growth? Okinawa launched its first product in India in 2017. Till date it has more than 200,000 products on road across India. "May–June sales are a testament to our commitment to manufacturing products that change the entire perception of electric two-wheelers in the industry. We have a defined customer-centric approach, which focuses on providing a great customer experience, be it in terms of our extensive dealership network or providing roadside assistance, EMI options, app connectivity, etc.," says Sharma exuding confidence.
"We aim to continue our growth with a strong vigour with our world-class manufacturing facilities which have state-of-the-art technology and a complete ecosystem of electric two-wheeler in the country," he adds.
Manufacturing Push
The company will now have now three manufacturing facilities in Rajasthan. The first facility has a production capacity of 90,000 units per year, while it is 300,000 units per year for the second facility, which began operations earlier this year in February. The third plant is slated to be the largest, fully integrated electric two-wheeler plant ever in India. According to the JV with Tacita which has two product lines, scooters and motorcycles, both meant for domestic as well as international markets, the manufacturing of the entire range will be rolled out from the third plant, informs Sharma.
What about rest of the current financial year? "We are charging ahead with an aggressive investment plan and seek to make the most out of the burgeoning demand for electric two-wheelers in India. We will be investing Rs 1,200 crore to Rs 1,500 crore in the next two years and this includes the Rs 1,000 crore in the JV with Tacita," says Sharma.
The first model of the JV will include a high-end performance motorcycle which will be rolled out in 2023. Sharma says Okinawa Autotech will be introducing the Okhi-100 electric motorcycle, one of the products it is working on as part of the JV with Tacita. "It will be rolled out either towards the end of FY22 or the beginning of FY23. In my opinion, five years from now, electric scooters will be 20 per cent of the ICE scooter market. The overall market in 2025 will be around 26 million scooters, of which five million will be electric scooters," he adds.
Treading Responsibly
Has there been any decline in customers’ enthusiasm following the recent fire incidents related to EV scooters and battery? How has the company addressed the customer concerns? "We have not witnessed any impact or drop in consumer sentiment as the company has undertaken robust steps to address the customer concerns on priority," says Sharma. He points to the sales in May and June as a testament to the company’s commitment to building products that change the entire perception of electric two-wheelers for the customers.
What about safety measures? "As a responsible brand, we have introduced several service campaigns like Mileage Ka Maharaja and Power Pack check-up camps to make our customers aware and responsive to owning and maintaining electric two-wheelers," he adds.
The company, according to Sharma, is accelerating its efforts to educate the customers on maintaining their vehicles and the battery packs. "We educate the customers that electric vehicles need periodic maintenance and upkeep." After all, safety comes first!
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