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DAO EVTech To Invest $100 Mn To Enter Indian Ebike Space

DAO EVTech To Invest $100 Mn To Enter Indian Ebike Space

DAO EVTech is going to set up a manufacturing plant in Telangana

The company is looking to invest close to $30 Mn for the plant

DAO EVTech plans to invest around $100 Mn in the country over the next three years

China-based electric vehicle (EV) manufacturer DAO EVTech, on Tuesday (December 17), announced that it is going to set up an EV manufacturing unit in Andhra Pradesh to manufacture its slow speed ebikes by February 2020.

According to a report by The Hindu, the company, currently, is looking to assemble the ebikes in a temporary leased facility, which will be based in Telangana. Further, for the establishment of a manufacturing complex near Krishnapatnam in Andhra Pradesh, DAO EVTech plans to invest around $100 Mn in the country over the next three years.

Achutuni Balaji, director and chief financial officer of DAO EVTech said that in the first phase of expansion in India, the company is looking to invest close to $30 Mn and then strategically invest the next $70 Mn in a phased manner by creating ebikes ecosystem.

On the announcement of Indian operations, Michael Liu, chairman and CEO of DAO EVTech, said that the company has 25 years of experience in the electric two-wheelers segment, and having a portfolio of scores of models, it is looking at India as a big unfolding market for electric vehicles.

Liu added that the company decided to enter the Indian market with the objective to ride into a green future with Indian customers. “The urbanisation of India is set to go up needing electric mobility,” he added.

For its expansion and sales in India, DAO EVTech will partner with young entrepreneurs to develop an extensive dealership network in the country. DAO EVTech claims that the company by developing and introducing the new technologies to India for the first time will make internet-powered EVs in the country.

Currently, it is expected that the company will introduce only its slow speed range of ebikes. However, DAO EVTech is also planning to expand its product portfolio in India in the near future.

Notably, India is the second-largest motorcycle market in the world, with sales dominated by basic commuters. Over 20 Mn two-wheelers were sold to domestic customers in 2017 – 18, making it the most popular vehicle category sold in India. Moreover, with the push for EVs in India, a lot of Indian companies and startups have shifted their focus on selling ebikes.

Micromax cofounder Rahul Sharma’s startup Revolt Intellicorp has recently unveiled its AI-enabled electric motorcycle RV 400, in June 2019. Along with a range of 156 Km and four hours charging time, RV 400 will also be connected to a Revolt mobile app.

Bajaj Auto, which is one of India’s largest two-wheeler manufacturers, has also announced the plans for launching its first electric scooter, the Chetak Electric by January 2019.

Author

Inc42 Staff

Aman is a recent postgraduate in English Journalism. He currently writes on startup ecosystem and technology. You can write to him at [email protected]

https://inc42.com/buzz/google-facebook-infosys-others-to-fuel-10-hiring-growth-in-india/
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