PMI Electro aims to reduce costs by 30%, boost turnover to Rs 1,200 cr

To meet burgeoning demand targets, the company is banking on its Pune plant, which is set to commence operations by FY25

PMI Electro Mobility, India’s largest electric bus (e-bus) manufacturer, is working to leverage its core ability of data and technology to bring down the cost of its vehicles by 25-30 per cent.

It is also eyeing to double turnover to Rs 1,200 crore by 2025 from Rs 600 crore expected in financial year 2023 (FY23).

“We have made substantial investments in research and development (R&D). Our aim is to leverage that to increase our indigenous raw material production, which would help us cut costs and increase revenue,” said Aanchal Jain, chief executive officer (CEO), PMI Electro Mobility.

She believes that the company’s current order book of 2,500 e-buses will also aid it in achieving its target.

The company is also working on developing its new models of e-buses and strengthening its battery production unit.

Currently, it sells three types of buses — 12 metre, 9 metre, and 7 metre, with a range of 180 km, 150 km, and 80 km, respectively.

The company is also working on developing hydrogen-powered buses. “We try to catch up with market demands and if the demand comes for this, we will be ready,” said Jain.

The battery of an e-bus contributes 50-60 per cent of the total cost.

Jain plans to make battery production as indigenous as possible at the company’s in-house assembly factory in Dharuhera (Haryana).

She feels that with several companies announcing cell manufacturing indigenously, the cost could be reduced further.

Jain feels that the Centre’s plan to deploy 50,000 e-buses under the National Electric Bus Program will help the market grow.

PMI Electro Mobility’s share stands at 24 per cent of the 4,933 e-buses sold in the country since 2017.

To meet the burgeoning demand targets, the company is banking on its Pune plant, which is set to commence operations by FY25.

Establishment of the Pune plant will enable it to manufacture 6,000 electric vehicles annually.

Meanwhile, its existing facility in Dharuhera produces around 2,500 e-buses per year.

To meet its expansion and operations targets, the company is planning to raise Rs 500 crore in about two years, said Jain.

In July, PMI also signed an MoU with REC, which provided Rs 480 crore in financial assistance in the form of debt.