By Priya Singh
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Updated On: 13-Apr-2023 04:24 PM
Omega Seiki Mobility is also looking into the possibility of establishing a single integrated plant for electric three-wheelers and electric trucks.
Omega Seiki Mobility is also looking into the possibility of establishing a single integrated plant for electric three-wheelers and electric trucks.
Omega Seiki Mobility, India's largest EV producer, has announced plans to invest $200 million in the establishment of two EV manufacturing plants in South India. The plants will primarily manufacture electric three-wheelers and trucks for the domestic market.
"In this region, we hope to establish a mega EV production unit for electric three-wheelers as well as a new factory for electric commercial vehicles. We are in discussions with the governments of Tamil Nadu and Karnataka. We are in the process of raising about $100 million in equity and debt to fund our expansion," said Uday Narang, Founder and Chairman of Omega Seiki Mobility.
Due to the potential for expansion and the reduction of logistical costs, it was decided to build a factory in the southern region of India. The new facilities will allow the company to enhance production capacity and provide its clients with a broader selection of EVs.
Omega Seiki Mobility is additionally looking into the establishment of a single integrated factory for electric three-wheelers and electric trucks. To support this development, the company is raising $100 million in a mix of equity and debt, its first fundraiser since it began operations.
The company's strategic aim is to make EVs more accessible to the general public while also playing in speciality markets. Omega Seiki Mobility has already produced an electric three-wheeler aimed at small-town mobile food enterprises. In Tier 2, 3, and 4 regions, the company wants to focus on the B2B passenger segment for electric two-wheelers and electric three-wheelers.
It will shortly release its first electric four-wheeled compact vehicle with a range of around 180 kilometres (on a single charge). This will be in the 1-tonne cargo category which Tata Ace currently dominates.
"We are in the process of raising about $100 million to fund our expansion—a mix of equity and debt," said Narang, who spent 30 years in the US and Europe before starting the company in 2016.
This will be its first fundraiser since the operation began. OSM sold roughly 5,100 electric three-wheelers in the fiscal year 2023 and anticipates selling approximately 25,000 units in the fiscal year 2024, including 13,000 electric passenger 3Ws and 12,000 electric cargo 3Ws.
The senior officials claim that By the end of this year, it will also have doubled the number of dealerships it has now. Its revenue for FY23 is expected to be 200 crores, up from 56 crores in FY22. The goal is to reach 500 crores by the end of this fiscal year.
To offer battery cell technology to the Indian market, the company has a joint venture with iM3NY, a US-based lithium-ion cell producer with a Gigafactory. It has a joint venture with Korean electric powertrain maker Jae Sung Tech and has developed electric powertrains for its EVs ranging from 7.5 kW to 30 kW.