Micromax Plans To Enter Electric Vehicle Segment As Mobile Competition Increases

Founded in 2000, Micromax is an Indian consumer Electronics Company located in Gurgaon, Haryana. As the mobile phone and consumer electronics market has become fiercer than before, the company is now planning to enter a new segment – electric vehicles and battery manufacturing. According to industry sources, Micromax is now in the later stage of testing formalities for the electric vehicles before it is introduced in the market. The company also already received approvals needed for specific lithium battery categories.

The company is looking forward to making an entry into the electronic two and three-wheeler vehicles segment. The prototypes are being tested vigorously. They already have the required certification for lithium batteries for e-autos and e-rickshaws. Now the Gurugram-based company is hoping to pull in some investors to get funding for its new ventures.

Rajesh Agarwal, the co-founder of Micromax said that they are planning to make an entry into the electric vehicles segment; however, things are still in early stages so it’s difficult to predict anything. He confirmed that they are talking to various technology partners.

Another company spokesperson said that the company hopes to enter the electric vehicles segment as they look at it as a big opportunity. There are few players in this segment and there’s a lot of demand from the government and private organizations. Some of their main competitors would be Mahindra, TVS, Bajaj Auto and Piaggio Ape.

The e-rickshaw segment is not very organized and there’s a wide scope of growth in the electric two-wheelers segment. The government has been focusing on promoting electric vehicles and you can soon see electric two wheelers and three wheelers plying the roads.

Companies such as Ola and Uber are looking for mass procurement, as most of the states support the use of electric vehicles for a greener and cleaner and environment.

The biggest advantage for Micromax or other companies looking to enter the electronic vehicle’s market is that the Union government also offers fiscal and types of incentives for the second phase of development under the FAME (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles) scheme.

It also includes waiving of the registration cost and road tax on the sale of e-vehicles. The government is considering special incentives and duty waivers for the companies looking to enter this segment.

We will still have to wait for several years before we can see Micromax e-vehicles plying on the road. As of now, the company is waiting for the government authorities to approve the prototype so that they can set up the manufacturing unit.

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