Electra EV, the Ratan Tata-founded firm that offers EV powertrain solutions to Tata Motors and various other automakers, envisages doubling its turnover every financial year on the back of strong order books, the company’s top official said.
“Based on the massive demand we have been seeing from July 2021 onwards, Electra EV aspires to double its revenues every financial year for the next two-three years, from the FY20 levels,” Samir Yajnik, executive director, Electra EV, told Business Standard.
It clocked Rs 115 crore in the financial year ended March 2020.
The company has seen a 10-fold jump in demand. Until August, Electra was making 100-150 EV kits a month. This had to be ramped up to 1,000 units.
“The market has suddenly become wild. There is demand from every segment of the automobile market — from fleet, personal, two-wheelers, three-wheelers, and even off-highway vehicles,” said Yajnik.
However, the availability of electronic parts and the logistics issue from China have made it challenging.
To deal with the supply demand mismatch, Electra has completely pre-booked orders for parts like battery cells it imports for 12 months.
It is also localising more aggressively and working on alternative solutions if the shortage lasts.
“Our focus in the future will be stepping up our execution by scaling up our processes, adding key people, and enhancing our supply-chain. We have come a long way on all the three fronts with initiatives that were executed during the lean period.”
The four-year-old Pune-based start-up supplies critical parts and aggregates ranging from battery systems, traction power and control systems, on-board chargers, and vehicle control units to auto firms. More than 25 per cent of the e-four-wheelers on Indian roads had an Electra EV powertrain in them in FY20, the company claims.
The company is looking to invest significantly in battery localisation and assembly, system-level simulations, and end-of-line testing of all its subsystems, he said. It will explore a combination of debt and equity for these investments.
With the e-mobility trend sweeping India and other geographies, Electra has set its sights on global markets for its affordable powertrain solutions. It sees a raft of automakers -- both existing and new -- create relevant used cases at affordable price points for Indian fleet operators and individual owners.
“Once our products have been proven robust and reliable in difficult tropical conditions in India, we will be ready to establish a global footprint, starting with markets with similar climatic conditions,” said Yajnik.
In addition to fostering relations with its customers as partners, it plans to collaborate with start-up companies in power electronics.
With its local and affordable solutions, Electra aims to accelerate electric mobility in India, Yajnik said. According to him, the Central and state governments’ EV policies are already “playing a massive role in building the initial momentum” and to provide the necessary push.
A pull is now coming from the users in all segments of the EV market. This year the market should multiply from levels in earlier years, he forecast. After two-wheelers, four-wheelers are set to take on electrifying their product portfolio.
Encouraged by Tata Motors, which has taken the lead in the segment with its e-Nexon and E-Tigor models and the various state and central-level subsidies, other carmakers, including Hyundai Motor India, MG Motor India, and Mahindra and Mahindra, have announced plans to bring affordable EV models over the next four to five years.
“It is interesting to note that the cost of ownership equation for EVs is lower than that for ICE (internal combustion engine) vehicles. For price parity at source, we would possibly need to wait another two years or so,” said Yajnik.