Micromax Informatics, leading player in the consumer durables market in India, is planning to invest in EVs (electric vehicles) and battery manufacturing in the segment. This is a great business strategy as the consumer electronics and handset market is seeing rising competition.
Micromax has received approvals for manufacture of lithium batteries and is also in the process of completion of testing electric vehicles. The company is focussing on the two-wheeler and three-wheeler market among electric vehicles, and is currently testing the prototypes for the same.
Micromax is also in talks with several investors for the funding it requires in its new venture. The company has reported that the market for electric vehicles shows tremendous growth prospect, as only a handful of competitors exist today. There is also demand for EVs from the government and private stakeholders.
Currently, the e-three wheelers industry has only players like Mahindra & Mahindra, Bajaj Auto, Piaggio Ape, and TVS. The e-rickshaw market is, more or less, unorganised as well. In the case of electric two-wheelers, the scope is very wide. The company is looking to invest in EVs as the government’s push towards e-mobility will leverage the electric two-wheeler and three-wheeler market growth.
The Union government is proposing to provide monetary incentives to manufacturers and sellers of EVs under its Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME) scheme. Other benefits may include waiver of road tax and registration charges for the sale of EVs. Manufacturers are also likely to receive incentives and duty waivers.
Once the prototypes designed by Micromax receive the nod from the government, it will decide on the location of its manufacturing unit. The lithium batteries produced by the company for e-autos and e-rickshaws has already been certified by the government and is in the market presently. Since the company currently deals with lithium batteries for its phone manufacture business, this foray into the EV segment is considered by analysts as an extension and diversification of its capabilities.