IPO-bound electric two-wheeler manufacturer Ather Energy is setting up its third manufacturing facility in Maharashtra to manufacture escooters and battery packs.

Ather currently has two manufacturing facilities in Tamil Nadu. One of these is for battery production and the other for vehicle assembly. Operations will continue as it is at these units, the startup said in a statement.

The new facility in Maharashtra’s Chhatrapati Sambhaji Nagar will allow the electric vehicle (EV) startup to get closer to more markets in the country, thereby reducing logistics cost and hastening the delivery of its finished products to customers. 

Speaking on the development, Devendra Fadnavis, deputy chief minister of the state, said, “Maharashtra offers a conducive business environment and continues to be a top destination for investments… We are happy to have Ather in Maharashtra, solidifying the state’s position as India’s leading automotive and manufacturing hub.”

Founded in 2013 by Swapnil Jain and Tarun Mehta, Ather is one of the leading players in the Indian electric two-wheeler market in the country. After building its market on its 450 series of escooters, the startup recently launched a family escooter series Rizta and forayed into the smart helmet category.

The startup also operates a charging network, Ather Grid, and makes energy storage systems for the EV. 

Announcing the plans for setting up the new manufacturing facility, Ather cofounder and CTO Jain said, “With our expanding product portfolio and the increasing consumer demand for our scooters, we decided to strategically diversify our production capabilities to an additional location that will be closer to more markets in the country. The new manufacturing facility will not only rationalise our logistic costs but will also hasten the delivery of finished products to our customers.”

As per Vahan data, the startup’s total vehicle registrations rose to 1.09 Lakh units in FY24 from 76,941 units in FY23. However, it has been facing increasing competition from the likes of IPO-bound Ola Electric and legacy automotive players like TVS Motor and Bajaj. 

Ather, in the statement, said that with the demand for electric two-wheelers increasing, it is focussing on increasing its production capacity, expanding its product portfolio, retail outlets, and charging infrastructure across the country. The startup currently has over 200 Experience Centres and over 1,900 fast chargers across India.

As part of its IPO preparation, Ather recently turned into a public entity, changing its name to Ather Energy Ltd from Ather Energy Pvt Ltd earlier. The startup is backed by Hero MotoCorp, GIC, NIIF, Nikhil Kamath, and Tiger Global. 

Ather’s turnover stood at INR 1,753.8 Cr in the year ended March 31, 2024 (FY24), a decline of 1.5% from INR 1,780.9 Cr reported a year ago. Its net loss stood at INR 864.5 Cr in FY23.

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Electric two wheeler maker Ather Energy has partnered with TATA Indian Institute of Skills (TIIS) to offer specialised training programmes across the EV sector.

The programmes will be designed to equip trainees with technical knowledge in battery systems, electric motors, power electronics, charging infrastructure and vehicle safety, Ather Energy said in a statement.

Besides, these will also offer trainees with practical experience across EV maintenance, repair and diagnostics, apart from soft skills like communication, teamwork and problem solving.

As part of this partnership, Ather Energy will also provide TATA IIS with vehicles, motors, batteries and other hardware equipment to build EV labs across all its facilities, the statement added.

Founded by Tarun Mehta and Swapnil Jain in 2013, Ather Energy is one of the major players in the Indian electric two-wheeler market. Besides manufacturing and servicing electric two wheelers, the startup also operates its own charging infrastructure and is involved in storage, distribution and management of electric power and other ancillary services.

Ather Energy closely competes against Bhavish Aggarwal’s Ola Electric, which at the moment is dominating the EV two-wheeler segment in the country. It is pertinent to note that Ola Electric is also looking to go public and received the market regulator SEBI’s approval last week for its INR 5,500+ Cr IPO.

Meanwhile, TATA IIS is a training institution which offers vocational training facilities to enhance skill development.

“The growing popularity of EVs in India has spurred the demand for a specialized and diversified skill set within the larger automotive sector. To actively bridge this gap, we are delighted to work with Tata IIS in providing a skilling solution for the EV sector by developing training programs for EV technicians and battery specialists” said Jain.

The development comes on the back when it was reported that Ather Energy’s board passed a resolution last week, during its annual general meeting, to convert the startup into a public company from private.

Following this, the startup’s name has changed to Ather Energy Ltd from Ather Energy Pvt Ltd earlier, its regulatory filings revealed.

Besides the conversion into a public entity, the startup is also increasing its authorised share capital to INR 50 Cr from INR 93.6 Lakh. It will also issue bonus shares to its shareholders and allot them 2.96 bonus equity shares for every share held. 

This comes months after it was reported that the electric vehicle (EV) startup roped in HSBC Holdings Plc, Nomura Holdings Inc, and JP Morgan Chase & Co to handle its initial public offering (IPO). Ather Energy was said to be eyeing a listing in the second half of 2024 at a valuation of around $2 Bn.

Earlier this month, Inc42 reported that Ather Energy raised INR 286 Cr through a mix of debt and equity from Stride Ventures and its cofounders. While Stride Ventures invested around INR 200 Cr via debentures, cofounder Tarun Mehta and Swapnil Jain infused INR 43.28 Cr. 

Ather Energy’s net loss surged 150% to INR 864.5 Cr in FY23 as against INR 344.1 Cr in the previous year. Meanwhile, operating revenue jumped 4.3X year-on-year (YoY) to INR 1,783.6 Cr during the year under review.

As per Inc42’s report, the Indian EV market houses various small as well as large EV startups and is estimated to reach $110.74 Bn by 2029. Startups like Ather Energy, Altigreen Propulsion Labs, BluSmart, and Exponent Energy have now come up with sustainable solutions for mobility.

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Taking a major step towards its initial public offering (IPO), electric two-wheeler manufacturer Ather Energy’s board passed a resolution last week, during its annual general meeting, to convert the startup into a public company from private.

Following this, the startup’s name has changed to Ather Energy Ltd from Ather Energy Pvt Ltd earlier, its regulatory filings revealed.

Besides the conversion into a public entity, the startup is also increasing its authorised share capital to INR 50 Cr from INR 93.6 Lakh. It will also issue bonus shares to its shareholders and allot them 2.96 bonus equity shares for every share held. 

The developments come months after it was reported that the electric vehicle (EV) startup roped in HSBC Holdings Plc, Nomura Holdings Inc, and JP Morgan Chase & Co to handle its initial public offering (IPO). Ather Energy was said to be eyeing a listing in the second half of 2024 at a valuation of around $2 Bn.

Earlier this month, Inc42 reported that Ather Energy raised INR 286 Cr through a mix of debt and equity from Stride Ventures and its cofounders. While Stride Ventures invested around INR 200 Cr via debentures, cofounder Tarun Mehta and Swapnil Jain infused INR 43.28 Cr. 

Besides, Hero MotoCorp acquired an additional 2.2% stake in Ather Energy for INR 124 Cr. Hero MotoCorp bought this stake from Flipkart cofounder Binny Bansal, who exited the startup by selling his entire 7.5% stake. Bansal sold the remaining part of this stake to Zerodha cofounder Nikhil Kamath.

Hero MotorCorp now owns around 40% stake in the EV startup. 

Founded in 2013 by Jain and Mehta, Ather Energy is one of the major players in the Indian electric two-wheeler market. Besides manufacturing and servicing electric two wheelers, the startup also operates its own charging infrastructure and is involved in storage, distribution and management of electric power and other ancillary services.

Ather Energy’s net loss surged 150% to INR 864.5 Cr in FY23 as against INR 344.1 Cr in the previous year. Meanwhile, operating revenue jumped 4.3X year-on-year (YoY) to INR 1,783.6 Cr during the year under review.

Ather Energy closely competes against Bhavish Aggarwal’s Ola Electric, which at the moment is dominating the EV two-wheeler segment in the country. It is pertinent to note that Ola Electric is also looking to go public and received the market regulator SEBI’s approval last week for its INR 5,500+ Cr IPO.

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The Bureau of Indian Standards (BIS) has introduced two new standards to enhance the safety and quality of electric vehicles (EVs) in India. 

Called IS 18590: 2024 and IS 18606: 2024, the two new standards pertain to L, M and N categories of electric vehicles. It is pertinent to note that while L category relates to two-wheelers, M and N categories correspond to four-wheelers and good trucks respectively. 

In an official statement, authorities said that the new standards mandate stringent safety and performance requirements for powertrains and batteries. 

“The BIS has introduced two new standards, IS 18590: 2024 and IS 18606: 2024, aimed at enhancing the safety of EVs in the L, M, and N categories. These standards focus on the critical component of electric vehicles—the powertrain—ensuring it meets stringent safety requirements. Additionally, they emphasize the safety and performance of batteries, ensuring they are both powerful and secure,” added BIS.

With this, India now boasts 30 local standards dedicated to electric vehicles and their accessories, including charging systems. 

For the uninitiated, IS 18590: 2024 mandates stringent safety protocols for powertrains of EVs, which are a critical element of any electric vehicle and covers components such as the motor, battery pack, and transmission system. This will enable BIS to mitigate risks related to EV operation and maintenance. 

On the other hand, IS 18606: 2024 sets benchmarks for battery durability, thermal management, and safety features. This, in turn, is expected to increase the safety and reliability of electric vehicles plying on Indian roads. 

The new mandates come as temperatures hit scorching highs in Northern India. In the past two years, summers have coincided with a spurt in incidents related to EV fires. 

In April this year, a Bengaluru Metropolitan Transport Corporation (BMTC) electric bus caught fire but no casualties were reported. 

In March, a shocking video emerged online which featured at least four Ather Energy escooters engulfed in flames inside a transport truck. Multiple such incidents have also been reported online so far but questions remain over their veracity. 

In the past too, a spate of such fire incidents grabbed headlines across the country and included major EV players such as Ola Electric, Okinawa Autotech, and Pure EV, and even legacy brands like Tata.

As a result, many users and critics have raised questions over the safety of such vehicles and have sought government intervention in reining these incidents. Such was the clamour that the CTO of Dutch semiconductor design company NXP, Lars Reger, said that the use of “cheap” laptop chips in battery management systems (BMS) of EVs was responsible for such fire incidents.

Meanwhile, the Centre has cracked the whip on such incidents and has instituted multiple probes to investigate the matter. Last month, authorities also reportedly ordered an investigation into a fire incident involving a Tata Motors electric vehicle. 

Despite the issues, EVs continue to see rapid adoption in the country, primarily in the two-wheeler space. As per data from the VAHAN portal, EV sales stood at 1.23 Lakh in May 2024, up 8.8% sequentially from April’s 1.12 Lakh units.

Additionally, the Ministry of Heavy Industries, in April, also allocated INR 500 Cr for the new Electric Mobility Promotion Scheme 2024 till July 2024 to promote EV sales in the country.

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After the FAME-II fiasco last year, the government is reportedly set to penalise the electric automakers that opt for FAME-III subsidy, if they do not adhere to the localisation norms laid down under the new scheme.

As per an ET report, the EV companies certifying vehicles for subsidies under FAME-III would have to undergo a techno-commercial audit twice a year to ascertain they are meeting the localisation guidelines. 

A government official informed the publication that in the case of any irregularities to the norm, the manufacturers would be liable to return the claimed government subsidies with an interest, which would be at a rate 3% higher than the marginal cost of funds-based lending rate (MCLR) in penalties.

“We are putting in place a committee with representatives from testing agencies, which will audit every six months whether companies are meeting the localisation norms in vehicles certified under FAME,” the official was quoted as saying. “In the event of non-compliance, they will have to refund claimed subsidies with interest at a higher rate than MCLR.”

It is to be noted that FAME-III is likely to be announced in the upcoming budget next month with an expected outlay of INR 10,000 Cr to keep boosting the adoption of EVs in the country. The upcoming scheme is likely to focus significantly on the adoption of public transport such as ebuses along with two- three- and four-wheelers, while also focusing on charging infrastructure.

The earlier iteration of FAME, the FAME-II, which ended in March this year, was launched in 2019 with a total outlay of INR 10,000 Cr. It was slated to support 10 Lakh electric two-wheelers, 5 Lakh electric three-wheelers, 7,000 electric buses, and 55,000 electric four-wheeler passenger cars through subsidies.

However, following multiple fire-related incidents with EVs in the country, more than a dozen of the top electric two-wheeler players of 2022, came under the government’s scrutiny last year for not adhering to the localisation norms and were heavily penalised.  The most prominent players of 2022 like Okinawa Autotech, PureEV, Hero Electric and Ampere, slowly lost their leading positions in terms of vehicle sales.

Following the misappropriation of the subsidies, the MHI cut incentives under the FAME-II scheme last year to 15% of the ex-factory price of a two-wheeler EV from 40% earlier while also slashing the demand incentive.

The Ministry of Heavy Industries (MHI) also sent notices to the OEMs under the scanner to recover subsidies worth a total of INR 469 Cr for flouting the localisation norms.

The MHI’s decision to put an embargo on some of the manufacturers from listing their sales on the official National Automotive Board (NAB) portal, penalising them, and issuing notices to the OEMs to return the subsidy amounts, led to a huge outcry in the EV industry.

Commenting on the government’s third iteration of FAME, the official told the publication that the objective of the scheme is to support and accelerate consumer adoption of EVs and simultaneously create a local ecosystem to bring their costs down over time. 

“It goes against the very purpose of the scheme if companies do not source locally. It will hinder the development of a vendor base in the country,” the official was quoted as saying.

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With the newly formed union cabinet expected to continue subsidising electric vehicles through demand incentives, the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme is set to get a third iteration during the upcoming Budget, slated for next month.

While reports about a FAME-III launch, with an INR 10,000 Cr budget, have been doing rounds since the beginning of the year, there were speculations about whether the government would spend further on subsidising EVs, particularly after last year’s FAME-II fiasco.

However, a senior government official informed ET that the Ministry of Heavy Industries (MHI) has already sent a plan for the scheme for vetting to the Prime Minister’s Office (PMO).

The government will reportedly take a final call on the proposal closer to the union budget, keeping the fiscal situation in view.

As per the report, the FAME-III scheme would support electric two- three- and four-wheelers. Earlier reports suggested that the new scheme would look to provide more support to electric three-wheelers and public transportation like ebuses.

The earlier iteration of FAME, the FAME-II, which ended in March, was launched in 2019 with a total outlay of INR 10,000 Cr. It was slated to support 10 Lakh electric two-wheelers, 5 Lakh electric three-wheelers, 7,000 electric buses, and 55,000 electric four-wheeler passenger cars through subsidies.

After finding misappropriation of subsidies by some original equipment manufacturers (OEMs), the MHI last year lowered the incentive under the FAME II scheme to 15% of the ex-factory price of a two-wheeler EV from 40% earlier. 

Despite industry-wide demand for the extension of FAME-II or introduction of FAME-III during the interim budget 2024-25, the union ministry did not make any such announcement. In fact, during the interim budget, the government reduced budgetary allocation on this EV demand incentive scheme by a little over 44% to INR 2,671.33 Cr for FY25.

However, the Centre allocated INR 500 Cr under a new Electric Mobility Promotion Scheme 2024 to support EV adoption for four months – April to July. Of the total, INR 493.55 Cr was earmarked for subsidies and incentives, while the remaining INR 6.45 Cr was set aside for information, education and communication activities.

While there have been numerous arguments for and against the need for demand incentives for the EV industry now, given the ecosystem has matured over the last few years, former CEO of NITI Aayog and current G20 Sherpa for India, Amitabh Kant, recently told Inc42 that EV subsidies were required till 2030.

“If we want to achieve the EV30@30 vision, we have to ensure FAME-III policy consistency,” Kant said.

The sales of EVs have jumped sharply over the last few years, with two- and three-wheelers witnessing most of the growth helped by government incentives.

In 2022, total EV registrations grew to 10.25 Lakh units from 3.31 Lakh units a year ago.

In 2023, the number stood at 15.32 units. This year, India has already seen registrations of almost 8 Lakh EVs, as per Vahan data.

The post FAME-III Likely To Be Unveiled On Budget Day With INR 10,000 Cr Outlay appeared first on Inc42 Media.

Just a day after Hero MotoCorp picked up an additional 2.2% stake in two-wheeler electric vehicle (EV) maker Ather Energy in a secondary transaction, it has now reportedly emerged that Flipkart cofounder Sachin Bansal was one the one who offloaded the stake. 

As per Economic Times, Bansal exited Ather by selling his remaining 7.5% shareholding in the EV major. While Hero MotoCorp lapped up a 2.2% stake for INR 124 Cr, the remaining 5.3% was sold to Zerodha cofounder Nikhil Kamath.

A rough calculation puts the size of Kamath’s purchase at around INR 282 Cr as per the inferred valuation of INR 5,636 Cr from the latest stake acquisition by Hero MotoCorp. 

As per the report, Bansal was one of the first investors in Ather and had invested nearly INR 400 Cr in the EV maker since 2014. 

Inc42 has reached out to Ather Energy, Sachin Bansal and Nikhil Kamath for a comment on the story. Hero MotoCorp could not be reached for a comment. This story will be updated with their response when it is received. 

This comes a few weeks after reports first surfaced that Sachin Bansal had divested a significant portion of his shares to Kamath. At the time, it was also reported that  Ather Energy was seeking substantial funding through a combination of primary and secondary share sales.

Post the 2.2% stake acquisition deal, Hero MotoCorp will hold about 40% of the EV startup’s total shareholding. In its filing with the BSE announcing the deal, Hero MotoCorp also said that Ather’s turnover stood at INR 1,753.8 in the fiscal year 2023-24 (FY24), down 1.5% from INR 1,780.9 Cr reported in the year-ago period.

The fresh fundraise came just days after Ather Energy’s board approved plans to raise INR 286.5 Cr in a mix of equity and debt. In September 2023, the EV maker also bagged INR 900 Cr from existing shareholders Hero MotoCorp and GIC through a rights issue.

Founded in 2013 by Swapnil Jain and Tarun Mehta, Ather Energy is a major player in the Indian electric two-wheeler market. It designs, manufactures and services electric two wheelers. It also operates its own charging infrastructure and is involved in storage, distribution and management of electric power and other ancillary services.

The startup’s net loss surged 150% to INR 864.5 Cr in FY23 as against INR 344.1 Cr in the previous year. Meanwhile, operating revenue jumped 4.3X year-on-year (YoY) to INR 1,783.6 Cr during the year under review.

The post Sachin Bansal Exits Ather, Sells Stake To Hero MotoCorp & Nikhil Kamath appeared first on Inc42 Media.

Hero MotoCorp-backed electric two-wheeler startup Ather Energy’s turnover stood at INR 1,753.8 Cr in the year ended March 31, 2024 (FY24), a decline of 1.5% from INR 1,780.9 Cr reported in the year-ago period, as per Hero MotoCorp’s exchange filings. 

It must be noted that automotive giant Hero MotoCorp announced an additional 2.2% stake acquisition in Ather for INR 124 Cr on Thursday (June 6). The company’s disclosure also mentioned Ather’s turnover.

The decline in the EV startup’s turnover in the last fiscal year is in stark contrast to the 336% year-on-year (YoY) jump it witnessed in FY23 from INR 408.5 Cr in FY22.

Ather reported a 4.3X jump in its operating revenue to INR 1,783.6 Cr in FY23 from INR 408.5 Cr in the year before. 

Although turnover and operating revenue are often used interchangeably, there might be small differences in numbers while accounting. Hero MotoCorp did not provide Ather’s operating revenue or any other financial metrics in its filing.

Founded in 2013 by Swapnil Jain and Tarun Mehta, Ather is among the top players in the Indian electric two-wheeler market. From designing and manufacturing of vehicles and batteries to establishing its own charging infrastructure, Ather has created a huge network of its products and services over the years. It earns a majority of its revenue from the sales of escooters.

Ather competes with Bhavish Aggarwal-led Ola Electric, automotive giants TVS Motor, Bajaj, Hero MotoCorp, among others.

After building its market on its 450 series of escooters, Ather recently launched a family escooter series Rizta and also forayed into the smart helmet category.

Interestingly, the decline in Ather’s turnover came despite its total vehicle registrations rising to 1.09 Lakh units in FY24 from 76,941 units in FY23, as per Vahan data. This decline in turnover could likely be because of Ather reducing its vehicle price.

Amid rising competition from Ola Electric and TVS Motor, Ather slashed the price of its 450S escooter variant by INR 20,000 last fiscal year to grow sales.

The EV startup’s net loss widened over 150% YoY to INR 864.5 Cr in FY23.

The post Ather’s FY24 Turnover Sees Marginal YoY Decline Despite Rise In EV Sales appeared first on Inc42 Media.

Auto giant Hero MotoCorp is acquiring an additional 2.2% stake in two-wheeler electric vehicle (EV) startup Ather Energy for INR 124 Cr in a secondary transaction. 

This translates into a valuation of INR 5,635 Cr (about $675 Mn) for Ather Energy. This is lower than the reported $750 Mn valuation the EV startup got during its Series E round in May 2022.

“Investment is being made in the form of purchase of additional shares from an existing shareholder of Ather Energy for acquisition of up to 2.2% shares (on a fully diluted basis),” Hero MotoCorp said in an exchange filing. 

The auto major said it will purchase the share from an existing investor of Ather Energy. 

This comes six months after Pawan Munjal-led Hero MotoCorp said it would buy an additional 3% stake in the EV startup for INR 140 Cr. At that time, the company said that the 3% stake would increase Hero MotoCorp’s shareholding in Ather Energy to 39.7%. 

The fresh fundraise also comes at a time when the startup has been raising back to back rounds. Last week, Inc42 reported that Ather Energy’s board approved its plans to raise INR 286.5 Cr in a mix of equity and debt.

Prior to that in September last year, Ather secured INR 900 Cr from existing shareholders Hero MotoCorp and GIC through a rights issue.

Founded in 2013 by Swapnil Jain and Tarun Mehta, Ather Energy is a major player in the Indian electric two-wheeler market. It designs, manufactures and services electric two wheelers. It also operates its own charging infrastructure and is involved in storage, distribution and management of electric power and other ancillary services.

As per the exchange filing, Ather Energy’s turnover stood at INR 1,753.8 Cr during the financial year 2023-24 (FY24). 

The startup clocked a net loss of INR 864.5 Cr in the financial year 2022-23 (FY23), up 150% from INR 344.1 Cr in the previous year. Meanwhile, operating revenue jumped 4.3X to INR 1,783.6 Cr during the year under review from INR 408.5 Cr in FY22.

Ather Energy is also reportedly eyeing a listing on the bourses as soon as the second half of 2024. It is said to be mulling raising $400 Mn through the public listing at a valuation of $2 Bn.

The post Hero MotoCorp To Buy Additional 2.2% Stake In Ather For INR 124 Cr In A Secondary Deal appeared first on Inc42 Media.

Electric vehicle (EV) startup Ather Energy is all set to raise INR 286.5 Cr in a mix of equity and debt. 

The Bengaluru-based startup’s board approved a proposal to raise an equity capital of INR 86.6 Cr from its founders – Tarun Mehta and Swapnil Jain – by issuing 74,148 Series F compulsory convertible preference shares.

Additionally, the electric two-wheeler startup’s board also approved raising INR 200 Cr of debt funding from Stride Ventures by issuing up to 20,000 non-convertible debentures.

The development was first reported by Entrackr.

The fundraise comes months after Hero MotoCorp said it would acquire an additional 3% stake in Ather for up to INR 140 Cr ($16.8 Mn). Earlier in September last year, Ather secured INR 900 Cr from existing shareholders Hero MotoCorp and GIC through a rights issue.

It was also reported in April this year that the EV manufacturer was in talks with existing investors to raise $75-90 Mn.

Earlier this year, reports suggested that existing investor Sachin Bansal had sold a significant portion of his shares in Ather Energy to Zerodha cofounder Nikhil Kamath.

Meanwhile, the filings also showed that the board of directors of Ather Energy approved the appointment of Kaushik Dutta as an independent director of the company for a five-year term, effective May 6, 2024.

Dutta is the founding co-director of non-profit Thought Arbitrage Research Institute and also a fellow member of the Institute of Chartered Accountants.

Currently, Dutta serves as the chairman of Zomato and, in the past, he has worked with IICA of the Ministry of Corporate Affairs, PricewaterhouseCoopers and Global Capital Markets among others.

Founded in 2013, Ather Energy is a major player in the Indian electric two-wheeler market. The startup recorded 4,052 units of two-wheeler EV registrations in April.

As per media reports, the startup is also eyeing a public listing, which can take place as soon as in the second half of 2024. Ather is said to be looking to raise as much as $400 Mn through a share sale at a valuation of $2 Bn.

The startup reported a 150% rise in its net loss to INR 864.5 Cr in the financial year 2022-23 (FY23) from INR 344.1 Cr in the previous year. Revenue from operations jumped 4.3X to INR 1,783.6 Cr during the year under review from INR 408.5 Cr in FY22.

The post Ather To Raise INR 286.5 Cr In Equity & Debt, Cofounders To Infuse INR 86.5 Cr appeared first on Inc42 Media.

Delhi NCR-based EV fleet management startup Zypp Electric has raised INR 115.7 Cr or $14 Mn in a fresh round of investment from Japanese energy giant ENEOS. As per the regulatory filings, the startup is receiving the investment from ENEOS Oil & Energy Pte Ltd, a subsidiary of the group.

This is also ENEOS’ first investment in an Indian startup. 

As per the document, the startup is raising the fresh capital by allotting 1,372 Series C compulsory convertible preference shares to ENEOS.  This capital infusion seems to be part of a larger Series C round being raised by Zypp, as per sources.

As per Inc42’s estimates, the startup is raising fresh funding at a valuation of around $280 Mn, almost double the $175 Mn valuation of its previous funding round. 

A query mail sent to Zypp Electric yesterday, didn’t elicit any response at the time of publishing the story. 

Earlier, Economic Times reported that the startup is raising around $40 Mn in Series C funding, which will be led by Silicon Valley-based Tribe Capital. 

Founded in 2017 by Akash Gupta and Rashi Agarwal, Zypp Electric provides electric scooters to local merchants and ecommerce companies for last-mile deliveries. The startup counts the likes of Swiggy, Zepto, Flipkart, Rapido, Blinkit, Zomato, Uber, and Amazon among its clients.

The startup claims to have an electric fleet of over 20,000 EV scooters and is operational in Delhi NCR, Bengaluru, and has also forayed into Hyderabad and Mumbai. 

To further solidify its presence, last year, Zypp Electric forayed into three wheeler cargo business and now claims to have over 750 three wheeler EVs. 

In FY23, on a standalone basis, the startup’s revenue from operations jumped by 5X to INR 109 Cr, from INR 21.4 Cr in the previous year. However, the startup’s net loss surged by 2X to INR 40.5 Cr in FY23, from INR 15.2 Cr. 

Zypp Electric claims to have seen a 3X jump in revenue in the financial year ending on March 31, 2024 (FY24), but the company has not disclosed the audited financials. . 

Till date, the startup has raised around $75 Mn in multiple funding rounds and counts Gogoro, Venture Catalysts, LetsVenture, IAN, Ivy Growth, We Founder Circle, among others its backers. 

In February of last year, the startup had last bagged $25 Mn in a mix of debt and equity in its Series B funding. 

Zypp competes against the likes of MoEving, Baaz Bikes, Yulu, Zen Mobility, Euler Motors, among others.

The post Exclusive: Zypp Electric Bags $14 Mn From Energy Giant ENEOS appeared first on Inc42 Media.

The government is reportedly considering restoring financial support to three two-wheeler electric makers, including Revolt Motors, Greaves Electric Mobility and Amo Mobility under its Electric Mobility Promotion Scheme 2024.

However, it may bar others, including Hero Electric, Okinawa Autotech and Benling India from all government schemes in future, ET reported. 

Of the 13 companies that the Ministry of Heavy Industries investigated in 2022, Hero Electric, Okinawa Autotech, Ampere Vehicles, Benling India, Amo Mobility, Lohia Auto and Revolt were found to violate the FAME II norms. Following this, the government halted the subsidies of these companies. 

The Centre has allocated INR 500 Cr for the new Electric Mobility Promotion Scheme 2024, after it granted a four-month extension to the FAME II scheme in March with an additional corpus of INR 500 Cr. The scheme was to reach its expiry on March 31, 2024. 

Among these companies, Revolt, Greaves and Amo have reportedly paid back INR 170 Cr for wrongfully claimed subsidies to the government. It is pertinent to note that the Centre issued notices around the recovery of INR 469 Cr subsidy availed by the defaulted companies between 2020 to 2023.

Defying the government’s claim, Hero, Okinawa and Benling, in turn, challenged the recovery notices.

Citing Okinawa’s spokesperson, ET reported, “We have filed a writ petition in Delhi High Court to recover our outstanding FAME II dues of upwards INR 425 Cr and our case is subjudice. Okinawa Autotech always has been compliant with the scheme guidelines and the same was observed by MHI’s committee headed by Joint Secretary, Mukta Shekhar.”

Meanwhile, not only Joint Secretary Mukta Shekhar’s report was rejected by the Centre, but it also ordered a new investigation into the FAME scheme, as per the report. Moreover, the latest investigation did not agree with the findings of the Shekhar report.

Earlier in March, it was reported that the Centre was considering legal action against Hero Electric, Okinawa Autotech and Benling India. As per the ministry’s estimates, an amount worth INR 155 Cr, INR 125 Cr and INR 50 Cr was to be recovered from Hero Electric, Okinawa and Benling respectively.

Under the FAME II scheme, domestic EV makers can claim a subsidy from the government of up to 40% discount on their vehicles’ cost. But they are also mandated to ensure that at least 50% of products use locally manufactured components.

FAME II was introduced in 2019 with an initial outlay of INT 10,000 Cr for supporting the adoption of EVs in the country. In February this year, the Finance Ministry approved an additional INR 1,500 Cr for the second phase of FAME-II.

This development comes at a time when the overall growth momentum is with the EV industry. Not to mention, aiming to make India a manufacturing hub for EV makers, the government in March also introduced a new EV policy that offers a reduced tariff on the import of EVs.

As per Inc42’s report, in 2023 EV sales surpassed the 1.5 Mn mark, dominated by two-wheelers and three-wheelers.

Last month the electric two-wheeler registrations in the country fell to almost an eight-month low mark at 64,013 units in April, after it surpassed 1 lakh registrations in March.

The post Govt May Restore EV Subsidies For Revolt Motors, Greaves And Amo Mobility: Report appeared first on Inc42 Media.

Even as OEMs and automotive giants have bemoaned the lack of clarity in India’s new policy to boost domestic electric vehicles (EV) manufacturing, government officials have reportedly given some indication on the potential focus areas for EV makers. 

In particular, investments made for creating physical infrastructure such as machinery and plants, charging stations and other assets will also qualify for incentives, unnamed officials were quoted as saying by ET.

It is pertinent to mention here that the government announced the new EV policy called the Scheme for Manufacturing of Electric Cars in March.

“Qualified investment will be money spent on setting up plant and machinery, charging infrastructure, and also assets owned by the company which are not on its premises,” ET quoted government officials as saying.

The report also added that up to 10% of the building cost can also be billed as an investment towards setting up EV-making capacity. 

This development follows the government’s consultation with the industry stakeholders, including representatives from global companies like Tesla, VinFast, Hyundai, Kia, Volkswagen, BMW and Audi as well as Indian carmakers like Maruti Suzuki, Tata and Mahindra & Mahindra.

The new EV policy allows reduced import taxes on original equipment manufacturers that commit to investing at least $500 Mn (INR 4,150 Cr) and establishing a manufacturing plant within three years. However, there was confusion about what such an investment needs to entail. 

The centre is also said to be soon inviting applications from global EV players to avail the benefits of EV policy. 

The ET report also claims that previous investments made by manufacturers won’t be considered under the new policy. This is pertinent because Vietnamese EV maker VinFast had enquired about the existing investments made by the company in India. According to officials quoted by the report, existing investments and ventures won’t be considered for the import duty exemption. 

In January, VinFast inked a Memorandum of Understanding (MoU) with the Tamil Nadu government to establish an EV manufacturing facility in the state. Under the pact, VinFast has announced an initial investment of $500 Mn in the first phase of the project which will span a period of five years. 

It is anticipated that the centre will allow EV players to apply for approvals under the new policy from July 31 or later.

The post Under New EV Policy, Investments In Infrastructure Eligible For Incentives: Report appeared first on Inc42 Media.

The government is considering providing incentives to private companies to establish lithium processing facilities in an effort to develop its lithium mining sector and bolster the supply of the EV battery metal.

As per Reuters’ report, citing government sources, these incentives would be offered to companies for setting up lithium processing plants under a new critical minerals policy that was being worked out by the mines ministry.

“The critical minerals policy will be comprehensive and will cover all aspects from exploration to mining to value addition,” one of the sources said.

“It will also cover incentives for beneficiation and refining within the country,” the source said.

The sources, however, said it was a little early to know the exact form of incentives the government would offer, but New Delhi would try to take a cue from countries such as Australia and Canada.

It is pertinent to note that in November last year, the government opened the auction of lithium, along with 20 other critical minerals. 

Earlier this year, Ola Electric was also reported considering bidding for mining rights for lithium blocks being auctioned by the Indian government.  

Other potential bidders for lithium reportedly include Adani Enterprises, Vedanta Ltd, Reliance Industries and Himadri Chemicals. 

The collective value of the blocks was estimated at INR 45,000 Cr at the time of the auction. These blocks include titanium, bauxite (aluminous laterite), glauconite, nickel, chromium, potash, copper, and graphite. 

Transport minister Nitin Gadkari even said that if the lithium found in Jammu & Kashmir can be used, India could become the world’s leading car maker.

Lithium is a crucial mineral for the manufacturing of lithium-ion batteries used in electric vehicles (EVs), smartphones, and various other battery-operated electronic devices.

The largest exporters of lithium in the world are China, Chili, Australia, and Others. 

World Economic Forum expects the demand for lithium to reach 1.5 Mn tonnes of lithium carbonate equivalent (LCE) by 2025 and over 3 Mn tonnes by 2030.

The post Centre Contemplating Incentives For Lithium Processing: Report appeared first on Inc42 Media.

UK-based electric drivetrain systems manufacturer DG Innovate (DGI) has entered the Indian market via a joint venture (JV) with electric commercial vehicle startup EVage Motors. DGI is led by former Tesla director Peter Bardenfleth-Hansen.

The JV will be 60% owned by DGI and 40% by EVage and will see both parties invest respective to their ownership in the entity. In a conversation with Inc42, EVage’s founder and CEO Inderveer Singh said that the partnership will see the two companies set up a manufacturing plant in Chandigarh to produce DGI’s proprietary Pareta electric drive system. 

“While DGI will facilitate the manufacturing process with designing and manufacturing expertise, EVage will give the JV an Indian access to penetrate the Indian market. The first batch of motors produced at the plant will be utilised by EVage’s vehicles and further produce will be sold to external customers,” he said. 

EVage, which was founded by Singh in 2014, supplies all-electric commercial vehicles to the delivery fleets of Indian logistics companies. It claims to support  India’s first native commercial EV platform via its Modular Miniature Manufacturing (Mcube) factory in Chandigarh. 

The factory currently produces one electric truck a day and has manufactured a total of more than 300 to date. Those trucks are servicing top FMCG, ecommerce and logistics companies throughout India, with top clients including Amazon, the startup said. Harnoor Kaur and Pulkit Srivastava also joined the company as cofounders later in 2017 and 2019, respectively.

DGI’s Bardenfleth-Hansen told Inc42 that the JV will not only allow the UK-based company to penetrate the growing Indian market but also establish its global manufacturing base in India. 

Bardenfleth-Hansen said that the company will be looking to export motors produced via the JV to other countries in Asia as well as Europe. He said that the current central regime’s bid to promote EV adoption in India prompted the company to enter the growing market. 

“The EV adoption in India is growing at a significant pace. In my observations of EV adoptions in other countries, B2C segments have traditionally driven EV adoptions. But, in India, the push is coming more from the B2B segment as the country is extremely fleet driven. The country also benefits from a leading manufacturing platform which will allow us to deploy our products at top speed and competitive costs,” he said. 

EVage last raised $28 Mn in seed funding from RedBlue Capital in 2022 to complete its production ready factory. 

With the in-house motor manufacturing capabilities resulting from the JV, Singh envisions vertical integration of the company’s EV stack. 

“We are aiming to leverage this tech for various platforms that will need electrification. We intend to increase the pace of EV transmission by making homegrown core tech components ready to be deployed in the EV marketplace via the JV,” cofounder Singh added. 

DGI’s flagship Pareta motor is a compact, cost-effective e-drive that the company claims to enable up to 30% more range as compared to conventional  motors, with 98.5% efficiency across the entire drive cycle. The factory will be developing three variants of the motor in the range of 1 kW to 3 kW which can be deployed in buses, trucks to smaller sized vehicles. The companies are eyeing to start manufacturing within a year.

Bardenfleth-Hansen joined the EV drivetrain manufacturer in 2023 after spending a decade working for Tesla in its business development function. DGI is an advanced research and development company focused on electric mobility and storage with a focus on sustainability and environmental considerations. 

DGI has roped Pierre Pellerey as a consultant for its India business along with a team of former Tesla managers and engineers. Pellerey brings over 15 years of experience in motor design: his work has been key to the development of the Tesla Model 3, Model Y, and Model S Plaid, as well as Dyson’s flagship V10 motor. 

The JV announcement comes at a time when the Indian EV ecosystem continues to make big strides. For instance, registrations of electric two-wheelers in the country crossed the 1 Lakh mark for the first time in a month in March. 

This comes on the back of Centre’s push to promote EV adoption in the country. The union government recently launched an INR 500 Cr scheme, the Electric Mobility Promotion Scheme 2024, to promote electric mobility from April 1. The new scheme will be in place till the end of July this year. 

Further, Indian authorities are also working to establish a task force to create a roadmap for the electric vehicle (EV) industry.

The post Former Tesla Exec-Led DGI Forms JV With EVage To Build Electric Motors In India appeared first on Inc42 Media.

After crossing the 1 Lakh mark in March, electric two-wheeler registrations in the country dipped to almost an eight-month low at 64,013 units in April.

Total registrations declined over 53% month-on-month (MoM) from over 1.37 Lakh units in March, as per Vahan data on May 1, amid lowered vehicle subsidies and seasonal factors.

Most two-wheeler EV players faced the heat of the demand slowdown. Ola Electric continued to top the chart even as its vehicle registration declined almost 35% MoM to 33,062 units last month.

IPO-bound Ola Electric had witnessed its highest-ever monthly vehicle registrations of over 50,000 units in March.

It is pertinent to note that in an attempt to increase vehicle sales, Ola Electric cut the prices of its latest escooter range S1 X last month. The Bhavish Aggarwal-led startup lowered the price range of the S1 X portfolio to INR 69,999 to INR 99,999 from INR 79,999 to INR 1,09,999 earlier.

On the other hand, TVS Motor maintained its second position in terms of vehicle registrations but saw a 71% MoM dip to 7,653 units in April. This was the lowest monthly vehicle registrations since October 2022 for the legacy automobile player. 

It is important to note here that Vahan data shows the total number of vehicle registrations and not sales, which can be higher than the former.

The slump in registrations in April narrowed TVS Motor’s lead over third-placed Bajaj Auto, even as the latter saw its registrations slump over 58% to 7,515 units from over 18,000 units in March.

Meanwhile, Bajaj might soon launch a new and more affordable variant of its escooter Chetak, as per reports.

Bengaluru-based EV manufacturer Ather Energy also saw its escooter registrations drop a whopping 75% to 4,052 units in April from 17,304 units in March.

It is pertinent to note that Ather is expanding its product range and launched a “family scooter” Rizta early last month. Besides, the startup, which is also gearing up for its IPO, forayed into the smart helmet category with its product line ‘HALO’ in April.

The startup continues to bat for the government continuing its demand subsidies to grow EV adoption in the country. Ather CEO Tarun Mehta recently told multiple publications that the absence of incentives would hinder market growth.

We must note that the Centre’s FAME-II scheme came to an end on March 31 this year. Amid industry demand for an extension of the scheme, the Centre launched an INR 500 Cr scheme, the Electric Mobility Promotion Scheme 2024, to promote emobility from April 1 till July end.

However, the demand incentive amount has been reduced under the new scheme.

Meanwhile, most other electric two-wheeler players, including Okinawa Autotech, Pure EV, Hero MotoCorp, and Hero Electric, also saw a decline in vehicle registrations in April.

However, Ampere Vehicles managed to increase its EV registrations by about 18% MoM to 164 units in April. Electric motorbike player Revolt also saw a 25% MoM rise in registrations to 743 units.

Hurt by the decline in electric two-wheeler registrations, total EV registrations across categories dropped to 1.12 Lakh units in April in the country from over 2 Lakh units in March.

The decline comes at a time when the Centre is working on new initiatives to increase EV sales in the country. The Ministry of Heavy Industries (MHI) is working on setting up a task force to create a roadmap for the EV industry to further increase vehicle electrification.

The MHI is working with multiple agencies such as the Retail Motor Industry Organisation (RMI), the India Energy Storage Alliance (IESA), and the Indian Battery Swapping Association (IBSA) to set up the task force via interaction with multiple stakeholders across the EV ecosystem.

The post Two-Wheeler EV Registrations Nosedive Over 50% MoM In April, Ola Takes 35% Hit appeared first on Inc42 Media.

In a bid to further vehicle electrification in the country, the central government is now working to establish a task force to create a roadmap for the electric vehicle (EV) industry.

The Ministry of Heavy Industries (MHI) is working with various agencies to set up the task force, which would engage with various stakeholders, including the original equipment manufacturers (OEMs), through various meetings and workshops.

As part of this, the Retail Motor Industry Organisation (RMI) will focus on electric two- and three-wheelers.

In a notification sent to the OEMs, the RMI said, “The Ministry of Heavy Industry is committed to aligning its future schemes and interventions with the Government of India’s vision of Viksit Bharat. To further this objective, the Ministry has collaborated with various think tanks to establish (the ) EV task force.”

Inc42 has accessed the notification. 

The first meeting, focusing on OEM and vehicle testing agencies in the EV sector, will be held on April 25, 2024. 

The primary discussion points for the first meeting with OEMs and vehicle testing agencies include identifying the challenges in scaling EV manufacturing in the country and identifying ways to establish India as a global manufacturing leader in this segment.

“Future convenings will target consultations with other key stakeholders, including charge point operators and battery swapping solution providers, fleet aggregators and first and last-mile service providers, financial institutions and EV retrofitters, policy think tanks, experts, practitioners from states and cities, and EV users – including auto unions and gig workers,” the notification sent to the EV manufacturers read.

Meanwhile, Mint reported that the MHI will finalise the setup of the task force in collaboration with the Federation of Indian Chambers of Commerce and Industry (FICCI) and other agencies.

The ministry has asked different agencies for inputs on 11 topics to build an action plan for EV adoption in the country, as per the report. 

As per the report, FICCI and GIZ (Deutsche Gesellschaft fur Internationale Zusammenarbeit), a German government and the EU agency, will focus on charging infrastructure. 

While the Indian Battery Swapping Association (IBSA) has been asked to lead the initiatives on battery swapping, the World Bank is reportedly involved in this project to oversee matters related to electric buses.

Others including WRI India, the India Energy Storage Alliance (IESA), and the US Agency of International Development (USAID) have also been assigned with various tasks by the MHI as part of this project.

Meanwhile, in a separate notification sent to the EV OEMs on Tuesday (April 23), the International Council on Clean Transportation (ICCT) said that it will lead the task force that is being created to accelerate the adoption of electric trucks, supported by University of California, Davis and others.

It is pertinent to note that this comes at a time when there is still no clarity if the Centre plans to launch a third phase of its Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme to promote EV adoption in the country via demand incentives.

FAME-II was introduced in 2019 with an initial total budget of INR 10,000 Cr to support 10 Lakh electric two-wheelers, 5 Lakh electric three-wheelers, 7,000 electric buses, and 55,000 electric four-wheeler passenger cars through subsidies to promote EV adoption.

The FAME-II scheme came to an end on March 31, 2024. Despite the industry’s demand for an extension of the scheme or the launch of FAME-III, the Centre did not make any such announcement in the interim budget.

While more development on the front is expected post general elections, the MHI recently allocated INR 500 Cr for a new Electric Mobility Promotion Scheme 2024, which will be valid for four months till July 2024. The new special scheme aims to support 3.33 Lakh electric two-wheelers and 38,828 electric three-wheelers.

Earlier this month, it was reported that Ather Energy, Ola Electric, Hero MotoCorp, Bajaj Auto, TVS and Kinetic Green have received the Centre’s nod to claim subsidies for sales of two-wheeler EVs under the new scheme.

The post Centre Working On Setting Up A Task Force To Increase EV Adoption appeared first on Inc42 Media.

Ather Energy, an electric two-wheeler manufacturer, is reportedly seeking substantial funding through a combination of primary and secondary share sales.

Existing investor Sachin Bansal, cofounder of Flipkart, has divested a significant portion of his shares to Nikhil Kamath, cofounder of Zerodha, ET reported. Moreover, Kamath might even acquire Bansal’s remaining stake in the company.

Ather Energy is in the final stages of securing $75-$90 Mn (approximately INR 750 Cr) in primary funding from its existing investors. Additionally, efforts are underway to attract new investors into the fold, signaling further expansion and potential opportunities for the company.

The primary funding round structure for Ather Energy is still under negotiation.

An existing investor might lead the upcoming funding round, potentially valuing Ather Energy at anywhere between $850 Mn and $1 Bn. If it is valued at $1 Bn in new funding round, it will also enter the coveted unicorn club.

“Among my private equity investments, this will be among the largest bets that I have made… I truly believe in the product and I am looking to have a good amount of exposure to Ather for the next decade,” Kamath said, as quoted in the report.

An email to Ather Energy seeking clarification on the development remained unanswered at the time of publishing this article.

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather is a major player in the Indian two-wheeler EV market. It currently offers two escooters – Ather 450X and Ather 450S.

The EV startup raised INR 900 Cr from existing shareholders Hero MotoCorp and GIC through a rights issue last year. Ather said it would use the fresh funds to launch new products and expand its charging infrastructure and retail network.

Ather Energy’s net loss surged over 150% in the year ended March 31, 2023. The EV startup reported a loss of INR 864.5 Cr in the financial year 2022-23 (FY23) as against a loss of INR 344.1 Cr in FY22, despite a strong growth in its sales.

Operating revenue ballooned 4.3X to INR 1,783.6 Cr in FY23 from INR 408.5 Cr in the previous fiscal year. Ather Energy’s operating revenue stood at INR 80 Cr in FY21.

The post Ather Energy In Talks For New Fundraise, Nikhil Kamath Buys Part Of Sachin Bansal’s Holding appeared first on Inc42 Media.

A group of charging network operators and energy companies have joined hands to build a common transaction network for electric vehicle users.

The UPI-like platform, Unified Energy Interface (UEI), is aimed at streamlining payment processes and transaction compatibility across EV charging networks. 

The alliance includes companies such as ChargeZone, Pulse Energy, Kazam, Sheru, Trinity and Turbo.

Leading public policy think tanks and research organisations such as the Rocky Mountain Institute and the World Resources Institute, will also join the consortium in an advisory capacity to advance the initiative.

For instance, ChargeZone has integrated its chargers with the UEI network, allowing for easy discovery and transactions. 

Meanwhile, players like Kazam and Pulse Energy, serving as tech facilitators for UEI, have empowered their clientele to discover, pay for and utilise charging services across any UEI-enabled station seamlessly.

Raj Kumar, executive director, Trinity said, “Trinity has been a pioneer in such initiatives, like UEI, which aims for seamless integration at the backend. This approach improves convenience for EV drivers by eliminating the need for multiple access cards or accounts.”

Akhil Jayaprakash, CEO, Pulse Energy, said “We are a customer obsessed organisation, since the beginning days of Pulse Energy we have been nurturing the idea of an open energy network. To accelerate the world’s transition to EVs, we need interoperable systems, and do business with each other seamlessly.”

Reji Pillai, CEO, India Smart Grid Forum (ISGF) said, “With UEI, we could enable (peer-to-peer) P2P payments directly between the peers while the energy wheeling charges for the utility can be levied in the electricity bills by the utility.”

The UEI alliance is believed to help in promoting global development, adoption and adherence to unified standards for energy-related digital platform transactions. 

Its key priorities revolve around increasing transaction volumes within the UEI network to boost efficiency and accessibility.

The UEI network has garnered approval from the department of science and technology in its latest e-mobility white paper. It’s built on the Beckn protocol, an open-source protocol developed in India. This protocol supports open networks like ONDC, UHI, ONEST, and others.

The Indian EV market houses various small as well as large EV startups and is estimated to reach $110.74 Bn by 2029.

The post Charging Network Operators, Energy Players To Build UPI-Like Platform For EV Users appeared first on Inc42 Media.

Artificial Intelligence (AI) is revolutionising the automotive industry, particularly in optimising electric vehicle (EV) performance. With its transformative capabilities, AI is enhancing efficiency, safety, and user experience across various aspects of EV technology. 

From predictive maintenance to autonomous driving features, energy management systems, smart charging infrastructure, and personalised user interfaces, AI is driving innovation and optimisation in the EV landscape.

AI can analyse vast amounts of data, identify patterns, and make informed decisions in real time. AI is driving significant advancements in EV technology. By optimising performance, enhancing safety, and improving user satisfaction, AI is paving the way for a future where electric vehicles are not only sustainable but also efficient and intelligent modes of transportation.

Predictive Maintenance

One of the key roles of AI in optimising EV performance is predictive maintenance. By analysing vast amounts of data from sensors and onboard diagnostics, AI algorithms can detect patterns indicative of potential failures in critical components such as batteries, motors, and charging systems. This proactive approach not only minimises unplanned downtime but also extends the lifespan of EV components, reducing maintenance costs for vehicle owners.

Autonomous Driving Features

AI-powered autonomous driving systems are another significant aspect of AI’s role in EV optimisation. Leveraging machine learning algorithms and real-time data from cameras, LiDAR, radar, and other sensors, these systems navigate roads safely and efficiently. Advanced driver-assistance systems (ADAS) enhance EV safety by providing features like adaptive cruise control, lane-keeping assistance, automatic emergency braking, and pedestrian detection, reducing the risk of accidents.

Energy Management Systems

AI-driven energy management systems play a crucial role in optimising the use of battery power in EVs. By analysing driving patterns, traffic conditions, weather forecasts, and terrain, these systems optimise energy consumption while maximising range and performance. Intelligent power distribution among components such as the battery pack, electric motors, and HVAC systems ensures optimal efficiency and range, addressing key concerns of EV adoption.

Smart Charging Infrastructure

AI is transforming EV charging infrastructure with smart charging solutions. These solutions optimise charging schedules based on factors like electricity demand, grid capacity, and cost fluctuations. AI algorithms consider user preferences, time-of-use tariffs, and renewable energy availability to schedule charging sessions for maximum convenience and cost-effectiveness. Additionally, AI-enabled charging stations perform diagnostics, detect faults, and prioritise maintenance tasks, ensuring reliability and safety.

Enhanced User Experience

AI-driven personalisation features enhance the overall user experience in EVs. Voice assistants, gesture recognition systems, and predictive analytics tailor settings such as climate control, entertainment, and navigation preferences based on individual user behaviour. Natural language processing (NLP) algorithms enable seamless communication between drivers and their vehicles, offering intuitive interfaces that improve accessibility and convenience.

In Conclusion

AI’s role in optimising EV performance is multifaceted and pivotal in shaping the future of transportation. From predictive maintenance and autonomous driving capabilities to energy management systems, smart charging infrastructure, and personalised user experiences, AI is driving innovation and efficiency in the EV industry. 

With continued advancements in AI technology, the future of electric vehicles looks promising, with enhanced performance, safety, and sustainability.

AI-based energy management systems optimise battery usage, maximising range without compromising performance. Smart charging infrastructure, guided by AI algorithms, optimises charging schedules based on factors like electricity demand and grid capacity, ensuring cost-effectiveness and reliability. 

AI enables personalised user experiences in EVs through features like voice assistants and adaptive settings, enhancing convenience and comfort for drivers and passengers. With continuous advancements in AI technology, the future of electric vehicles promises enhanced performance, safety, and sustainability, paving the way for a more efficient and intelligent transportation ecosystem.

The post The Role Of Artificial Intelligence In Optimising Electric Vehicle Performance appeared first on Inc42 Media.

Tata Passenger Electric Mobility (TPEM) has signed a Memorandum of Understanding (MoU) with Shell India to set up public electric vehicle (EV) charging stations across India. 

In a statement, Tata Motors said that the collaboration will leverage Shell’s widespread fuel station network and TPEM’s insights from over 1.4 Lakh Tata EVs on Indian roads to set up chargers at locations frequently visited by Tata EV owners. 

“Through this partnership, we aim to grow the existing charging infrastructure, which is crucial for mainstream adoption of EVs in the country, particularly as the customer base continues to expand,” TPEM chief strategy officer Balaje Rajan said.

The agreement is aimed at offering improved experience to EV owners in the country. According to the statement, the two companies are also exploring possibilities to launch convenient payment systems and loyalty programmes. 

“Our dedication to using 100% certified renewable sources combined with our ultra-fast and reliable chargers ensures that our customers enjoy a sustainable, hassle free and efficient charging experience. Our strategic partnership with Tata Passenger Electric Mobility Ltd aims to promote the widespread adoption of electric vehicles in the country by leveraging digital integration and customer-centric initiatives,” said Sanjay Varkey, director of Shell India Markets Private Limited. 

The development comes at a time when EV sales are on the rise in the country. However, unlike many western countries, EV adoption is being led by two-wheelers in India.

According to government data, the registrations of electric two-wheelers in the country crossed the 1 Lakh mark for the first time in March. The data revealed that total registrations jumped over 65% month-on-month (MoM) to 1.36 Lakh units last month from 82,500 units in February, showed Vahan data on April 1.

Meanwhile, TPEM claims to have a 71% market share in electric passenger vehicles in India.

To cater to the rising demand for EV charging stations, a number of startups and companies are currently working on further growing India’s charging infrastructure.

Earlier this week, Adani TotalEnergies E-Mobility signed an MoU with MG

Motor India to strengthen the electric vehicle charging infrastructure in the country.

The post Tata Partners Shell India To Set Up EV Charging Stations Across India appeared first on Inc42 Media.

Homegrown electric vehicle (EV) manufacturer Ather launched its “family scooter” Rizta on Saturday (April 6).

In a statement, the startup said that the new escooter has been designed with the Indian family in mind and focuses on aspects such as comfort, safety and connected tech.

“… Now, we are setting foot in the family segment with the Rizta, which has been designed and engineered with the Indian family in mind. It focuses on key aspects such as comfort, safety and connected tech, which we believe makes it an upgrade from the conventional scooters in the market,” said Ather cofounder and CEO Tarun Mehta.

Mehta told Reuters that the startup expects to attract a wider range of buyers in the country’s north and west regions, thereby, helping boost sales. 

Starting at INR 1.09 Lakh (Bengaluru ex-showroom price), the new escooter will be available in two models and three variants. While the Rizta S model will be available with a 2.9 kWh battery, Rizta Z will have the option of 2.9 kWh and 3.7 kWh batteries. 

As per the startup, the 2.9 kWh variant will deliver a range of 123 kms while the 3.7 kWh variant will deliver up to 160 kms. The new escooter will deliver a top speed of 80 kmph, as per Ather.

At the launch event, Ather also announced its foray into the smart helmet category with its product line ‘HALO’. Not just this, it also rolled out the latest upgrade to its tech stack, AtherStack 6.0.

Ather HALO is a full face, integrated smart helmet that will be available at an introductory price of INR 12,999. At the same event, the company also announced the launch of HALO Bit – a module that can be attached to Ather’s soon-to-be-launched half face helmets. HALO Bit will be priced at INR 4,999.

“We wanted to transform helmets from a mere compulsion to an integral part of a fun, engaging ride. So we built the HALO, our first smart helmet which offers premium sound by Harmon Kardon and integrates our proprietary auto WearDetect technology and wireless charging,” said Ather cofounder and CTO Swapnil Jain.

Meanwhile, the new AtherStack 6.0 upgrade will offer a slew of new features such as WhatsApp integration on the Ather dashboard, live location sharing, auto reply to calls and Alexa integration. The startup said that the new upgrade will also be rolled out to existing Ather scooter owners but with only “some of these features”.

“With new features…, we believe Ather Stack 6.0 will bring an important upgrade to rider safety, convenience and connectivity. Optimising the touchscreen dashboard and revamping the mobile app will offer a seamless ownership experience to both Rizta and Ather 450 customers,” added Jain.

Ather Bats For EV Subsidies 

At the launch event, the Ather CEO reportedly pitched the government to keep EV subsidies intact for another few years to boost the adoption of electric vehicles in the country. As per Economic Times, he said that the overall EV industry needs government incentives to continue to grow at a healthy pace. 

Mehta also urged the Centre to launch the third phase of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, adding that a “critical and sunrise sector” such as the two-wheeler EV market “could see degrowth with some products becoming unviable” if subsidies were pulled back too quickly.

“We’ve been able to cut down a lot of subsidy reliance, but it’s also come at the cost of almost a year’s worth of lost growth,” Mehta told Reuters in a separate interview.

As per ET, he also said that the company would also continue to require external capital for a few more years to fuel growth. While noting that the EV major would continue to look for funds, Mehta said that the potential fresh capital would largely be used to launch new products instead of “handling business cash losses”. 

The CEO also told Reuters that Ather continues to focus on topline growth, adding that the loss-making giant is yet to break-even. 

“We haven’t broken even yet, I think there’s still a journey, hopefully it’s not very long. Hopefully the Rizta plays a meaningful role because I am happy in how margins are shaping up at a unit level,” he told Reuters. 

Founded in 2013 by Mehta and Jain, Ather Energy is an EV original equipment manufacturer (OEM) that sells electric two-wheelers. Backed by giants such as Hero MotoCorp, GIC, NIIF and Tiger Global, the startup has raised more than $445 Mn in funding till date.

It also boasts more than 1,900 charging points spanning 100+ cities and 191 patent applications, 600+ trademarks, and 200+ design registrations to its name. 

The new launch comes at a time when the electric two-wheeler registrations continue to see a big uptick. In March, total two-wheeler EV registrations jumped more than 65% month-on-month (MoM) to 1.36 Lakh units in March 2024 compared to 82,500 in February 2024.

Ather Energy saw the fourth highest number of registrations in March at 17,204 units, clocking a sharp 90% MoM increase.

The post Ather Unveils Family Escooter Rizta, Forays Into Smart Helmet Segment appeared first on Inc42 Media.

The Centre has reportedly allowed Ather Energy, Ola Electric Mobility, Hero MotoCorp, Bajaj Auto, TVS and Kinetic Green to sell electric two-wheelers and claim subsidies under the newly unveiled Electric Mobility Promotion Scheme (EMPS), 2024.

These prospective subsidies can be claimed for sales made in the upcoming four months, ET reported, citing officials close to the matter.

Last month, the Ministry of Heavy Industries (MHI) announced a new scheme to promote sales of electric two- and three-wheelers. The Centre allocated INR 500 Cr for the EMPS 2024, which will be valid for four months till July 2024. 

The EMPS 2024 scheme aims to support the adoption of 3,72,000 two-wheeler and three-wheeler electric vehicles (EVs). To encourage the use of advanced technologies, the subsidies will only be available for vehicles equipped with advanced batteries, an official statement said then.

“The government’s EMPS 2024 programme, which is a component of Atmanirbhar Bharat, aims to develop a resilient, competitive and efficient electric vehicle manufacturing sector in India. The Phased Manufacture Programme, which promotes local manufacture and fortifies the EV supply chain, has been implemented with this goal in mind. Along the value chain, it would also result in a large increase in employment possibilities,” the statement added.

The launch of the EMPS came as a relief to EV companies worried about the lack of subsidy support for sales from April 1. 

As part of the Atmanirbhar Bharat initiative of the government, the EMPS 2024 aims to foster a competitive EV manufacturing sector in the country. To achieve this goal, the scheme has a Phased Manufacturing Programme to encourage domestic manufacturing and strengthen the EV supply chain.

With the controversy-hit FAME-II scheme ending on March 31, 2024, there were demands from various industry stakeholders to extend the scheme or launch the third phase of the FAME scheme. The EMPS scheme is aimed at incentivising EV adoption so that the end of FAME-II does not affect EV sales in the country.

It is pertinent to note that any decision on FAME-III is likely to be taken only after the new government is in place following the upcoming general elections, which will be held across seven phases between April 19 and June 1. 

Introduced in 2019, FAME-II initially had a total budget of INR 10,000 Cr for supporting the adoption of EVs in India. The finance ministry recently approved an additional budget of INR 1,500 Cr for the programme. 

Initially, the second phase of the scheme aimed to support 10 Lakh electric two-wheelers, 5 Lakh electric three-wheelers, 7,000 electric buses and 55,000 electric four-wheeler passenger cars through subsidies. 

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The registrations of electric two-wheelers in the country crossed the 1 Lakh mark for the first time in March, driven by a sharp increase in the sales of most of the manufacturers in the category.

Total registrations jumped over 65% month-on-month (MoM) to 1.36 Lakh units last month from 82,500 units in February, showed Vahan data on April 1.

Ola Electric recorded its highest ever monthly vehicle registrations by surpassing the 50,000 units mark. As per Vahan data, the Bhavish Aggarwal-led startup continued to hold the top position with total registrations of 50,538 two-wheeler electric vehicles (EVs) last month as against 33,923 units in February.

In a statement, the IPO-bound startup said its total registrations in March stood at 53,000 units.

“The fact that we recorded almost 1.20 Lakh registrations in Q4 FY24 alone speaks volumes of our robust scooter portfolio, and we aim to continue the growth trajectory,” said Anshul Khandelwal, chief marketing officer of Ola Electric, in the statement.

In March last year, the two-manufacturer had sold over 21,000 units of EVs.

The startup is aggressively expanding its product portfolio and related offerings. It currently has six models in its portfolio. In March, it also inaugurated its 450th service centre in Prayagraj.

Earlier today, Inc42 reported that the EV major has raised INR 410 Cr in debt funding from EvolutionX Debt Capital. 

Meanwhile, TVS Motor maintained its second position in terms of escooter registrations and saw over an 80% MoM rise in March. The legacy automotive company’s EV registrations increased to 26,466 units in March from 14,607 units in February.

In March 2023, TVS Motor sold around 17,000 units of escooters. 

After a slip in February, escooter registrations of Bajaj Auto also zoomed over 50% MoM to 17,900 units in March.

While Bajaj Auto retained the third spot in vehicle registrations in March, it held only a small lead over Ather Energy.

The Bengaluru-based escooter startup saw a sharp 90% MoM increase in registrations to 17,204 units in March. On a year-on-year (YoY) basis, it was a 41% rise from 12,100 escooter registrations. 

However, it is pertinent to note that Ather has been losing its market share since mid-2023 to Bajaj Auto and TVS Motor. The startup has been revamping its product portfolio for the last few months to retain its market share. While the deliveries of its new 450X escooters were expected to begin from March, its newest product Ather Rizta will be making its market debut this month. 

In a market that is clearly showing signs of domination by a handful of players, Hero MotoCorp has also started to grow its sales. In March, the original equipment manufacturer (OEM) saw registrations of 4,060 units of escooters, a massive 151% surge from 1,755 units in February.

While the two-wheeler EV players which were alleged to have been involved in misappropriation of FAME-II subsidy continue to shed market share, they saw improvement in registrations in March.

Okinawa Autotech’s EV registrations stood at 660 units, rising over 3% MoM. Electric bike maker Revolt’s vehicle registrations grew over 23% MoM to 591 units. Ampere Vehicle’s escooter registrations also grew 13% MoM to 138 units in March. 

However, Pure EV and Hero Electric continued to face a decline in sales volume.

Meanwhile, Bengaulru-based two-wheeler OEM River saw a rise in its registrations for another month. Its escooter registrations increased to 165 units in March from 84 units in February and 43 in January.

Recently, it also raised $40 Mn in its Series B funding round, led by Japan’s Yamaha Motor Corporation, to strengthen its product offering and distribution channel.

There were doubts in the EV industry about continuation of subsidies for electric two-wheelers following the controversies related to the FAME-II scheme, which came to an end on March 31. However, the Centre has launched an INR 500 Cr scheme, Electric Mobility Promotion Scheme 2024, to promote emobility from April 1. The new scheme will be in place till the end of July this year. 

The new scheme aims to support 3.33 Lakh electric two-wheelers, with a demand subsidy of up to INR 10,000 per vehicle.

Any decision about launching the third phase of the FAME scheme is expected to be taken post the general elections.

Meanwhile, the total EV registrations in the country, across categories, crossed the 2 Lakh units mark in March and stood at 2.08 Lakh units against 1.4 Lakh units in February.

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