Taiwan-based electric two wheeler vehicle maker Kymco has announced that it will be investing $65 Mn in Haryana-based electric scooter startup Twenty Two Motors Pvt.
This will be the biggest funding round for Twenty Two Motors so far. Earlier, it raised a $1.6 Mn pre-Series A funding round in April 2017.
This investment deal will be made over three years. Under this, the companies will collaborate to develop electric two-wheelers for the Indian market.
Parveen Kharb, CEO and Co-Founder of Twenty Two Motors said “We envisioned to facilitate Indian customers with smart EV vehicles and a proper infrastructure with charging stations and efficient battery and our partnership with KYMCO is the next step in this direction. This unique partnership will prove to be a revolution for fundamentals of Indian auto sector which no one expected so far as we shall be creating a complete new ecosystem for premium EV mobility in India”.
Synergy Between Kymco And Twenty Two Motors
During Auto Expo 2018, Twenty Two Motors founders indicated that they plan to sell more than two lakh units in the coming three years. Also, the company is expected to roll out 50,000 vehicles per year with an investment of about $70 Mn over a period of 2.5 years.
According to the reports, the companies have not yet disclosed the quantum of stake Kymko will own in Twenty Two Motors after the investment. For the initial deal, Kymco will be putting in $15 Mn in the startup. The rest will be invested over the three years.
During this time, both the companies will be working together to launch electric scooters under “22Kymco” brand. The companies are also expecting that their first product will be going be put up for sale in this fiscal year.
According to reports, Kymko Chairman, Allen Co has said that its engineers have been working with their partners in India to develop the electric scooters in the country.
Further, he also added that electric two wheelers have a better opportunity in India as the market is bigger in size. He also believes that half a million of the “22Kymco” scooters will be sold over next few years in the country.
Twenty Two Motors: The Journey So Far
In February 2018, it launched its smart electric scooter, Flow, at the Auto Expo 2018. Flow uses Artificial Intelligence and is connected to a cloud server which can suggest upcoming service requirements. While driving, it will also keep the driver updated on the touch dashboard display.
Key Features of EV ‘Flow’
- A user-centric mobile application that provides touch solution to all aspects of the vehicle, wgeo-fencing allows security against theft.
- Geo-fencing alerts to the owner once the vehicle is beyond the defined geographical boundaries.
- A charging session of five hours can travel more than 80 km at speeds of up to 60 Km per hour.
- Also offers telescopic suspension, in-built mobile charger and sufficient storage space for two helmets.
- It also features disk brakes, LED lamps, drag mode, reverse mode etc.
As per TechSci Research, the Indian electric two-wheeler market is forecasted to grow at a CAGR of more than 23%, during FY2018E–FY2023F.
Gemopai Electric Scooters which is a joint venture between Delhi-based startup Goreen E-Mobility and Opai Electric, had launched its first electric scooter Gemopai Ryder for the Indian market.
Also recently, Bengaluru-based Fae Bikes had also launched e-scooter sharing service in the city.
Other notable players in this space are Emflux Motors, Ultraviolette Automotive, Ather Energy among others. Hero MotoCorp is also working on developing its in-house electric two-wheelers at its Centre for Innovation and Technology in Jaipur.
Further, Japanese automaker Honda plans to infuse $1.2 Bn (INR 9,200 Cr) to set up its third factory in India to produce hybrid and electric vehicles.
As more and more companies are looking forward to develop the electric vehicle segment in India, the future of the segment in terms of adaptation by the consumers is yet to be seen.