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Electric two-wheeler maker iVOOMi Energy has announced an investment of ₹2 billion (~$25 million) in electric two-wheeler manufacturing and related research and development.
The manufacturing facility will come up in Pune, Maharashtra, and will be operational from March 2023. It will be the fourth manufacturing unit of the company in India.
Ashwin Bhandari, CEO and Co-Founder, iVOOMi, said, “In line with the government’s EV vision, we are constantly working towards creating an EV ecosystem by establishing new R&D and manufacturing units for producing cost-effective products for consumers and focusing on futuristic sector demands.”
iVOOMi manufactures electric vehicle batteries in-house. The company already has manufacturing units in Pune, Noida, and Ahmednagar.
The new investment is expected to enhance the production capacity by over 60,000 units a year and create 2,000 jobs. The production will go up from 180,000 to 240,000 units a year. The company has set itself a target of over 200,000 electric two-wheelers by the end of FY 2023.
The R&D facility will work on accelerating battery performance. The company will introduce battery modules, swappable batteries, and core battery technology. It also plans to develop exclusive B2B accessories and modules like simple-to-install loaders to enable back support for riders as add-ons.
iVOOMi’s e-scooter with lithium-ion battery packs typically costs ₹85,000 (~$1,066) in the market and is finding gradual adoption among consumers.
Mercom reported that EV retail sales witnessed 333% year-on-year growth in the first half of the calendar year 2022. In all, 390,399 units were sold during the six months per the Ministry of Road Transport and Highways data. The number of electric two-wheelers sold during the period was 240,662, a 656% growth compared to 31,823 units sold during the same period last year.
According to industry insiders, electric vehicle adoption in India is set for a breakthrough in 2022, thanks to a favorable policy regime and falling costs, and a rise in petrol and diesel prices. The Indian startup ecosystem, especially, is optimistic about EV growth, and many are investing heavily to gain a first-mover advantage.