EVage raises $28M to be a driving force in India’s commercial EV revolution

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The homogeneity of factors in India – specifically, climate change policies, fuel costs and skyrocketing demand for e-commerce – has set up ideal conditions for startups like the all-electric commercial vehicle startup EVage.

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The startup, which has already supplied five EV trucks to Amazon India’s delivery service partner and plans to provide “in the thousands” more by the end of the year, will raise $28 million led by new, according to one investor. The seed of the round is raised. US-based VC Revue Capital. EVage will use the funds to complete its production-ready factory outside Delhi in the first quarter of 2022 and ramp up production to meet growing demand.

EVage’s flagship vehicle is a one-ton (2,000 lb) truck that was designed for India’s commercial delivery market using feedback from its partnership with Amazon. The truck is developed on Evage’s industry-ready EV platform, which the company says allows it to build many different types of high-quality vehicles at a much lower cost than other OEMs. The startup plans to manufacture vehicles in “modular micro manufacturing” factories, similar to Arrival’s microfactories, which should have a smaller carbon footprint and require less capital to produce vehicles than traditional OEMs.

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Result: EVage aims to pass those savings on to its customers.

Finding a way to make production affordable for scaling up is critical, and the opportunity and demand for scaling up electric vehicles in India is enormous.

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India’s transport minister Nitin Gadkari, who says Olaf Sakers, general partner of RW Capital and future Eways board member, was a high-level hand in announcing Eways’ deal with Amazon, aiming to keep 30% private for the country. has kept. Electric cars, 40% buses, 80% two-wheelers and three-wheelers and 70% commercial vehicles by 2030.

A range of incentives such as rapid adoption and manufacturing of (hybrid and) electric vehicle schemes (FAME-I and FAME-II) Help by providing subsidies to electric two-wheelers and commercial or transit-related four-wheelers. The FAME-II subsidy is applicable only if the OEM procures 50% of the components from local manufacturers, which helps boost the supply side as well.

Two more three-wheelers are already moving towards that goal, especially as companies such as Ola Electric have set up a massive factory for e-scooters and Hero Motorcorp, one of the country’s largest micro-EV makers, has set up a factory in Taiwan. made a deal with. Battery swapping company Gogoro to build battery swapping network in India. Four-wheelers are a bit slow in the market, in part because the average passenger isn’t buying an electric car. Suckers said the path to adoption of electric four-wheelers is more likely to be through commercial roads.

India’s e-commerce market is exploding, especially as global companies are expanding their presence in the country and a mobile-first country full of smartphone users has become extra comfortable with easy digital transactions. Amazon invests $6.5 billion Since entering India in 2013, and Walmart entering the country through its $16 billion acquisition of startup Flipkart. Those companies, along with national and local delivery companies, want to partner with Indian OEMs that can meet the unique demands of the Indian market.

“There are some electric vehicles that operate in developed markets like the US and Europe, and you see companies like Rivian selling logistics fleets for those use cases, but the Indian logistics needs in the Indian market are very broad. are different,” Sakers told Nerdshala. “It requires a variety of problems to be solved, and so we see a huge opportunity to build custom-built vehicles for these types of use cases.

Sakers noted that from a pure engineering point of view, for example, vehicles from Eaves need not meet the same standards as in the West in terms of being certified to drive at highway speeds, as rarely in India. Vehicles go above 40 mph. That means everything from motor requirements to battery size and types of materials you make with different, and potentially much cheaper, suckers added.

“The total cost of ownership savings for customers is significant,” Sakers said. “They’re not only doing it for optic reasons, they’re also doing it for pure economic reasons. In India, if you produce a certain amount of emissions, you can’t work at certain times of the day in cities. So if you are operating electric vehicles it also improves your ability to operate a logistics fleet.”

“There aren’t many startups that fit this mold, which is why we’re putting so much capital into EVage,” Sackers said. “The demand for vehicles in this segment in India is half a million per annum. Taking production to the hundreds of thousands is going to be a challenge for the company, but it is also a huge opportunity.”

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