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Category: Auto & Electric Mobility

  • Homegrown EV startup Simple Energy secures $20 mn to scale up production

    New Delhi, July 29: Electric vehicle (EV) and clean energy startup Simple Energy on Monday announced it has secured $20 million in its Series A funding to scale up local production.

    The funding round saw participation from current investors, such as high-net-worth individuals (HNIs) from Haran family office, Dr A Velumani’s family office, Vasavi family office, and the Desai Family office (the promoter group of Apar Industries), among others.

    “As the adoption of EVs accelerates significantly in India, we are committed to playing a pivotal role in this burgeoning ecosystem,” said Suhas Rajkumar, Founder and CEO of Simple Energy.

    The capital raised will be tactically deployed to bolster “our production capacity and expand our dealership network nationwide,” he added.

    The startup aims to achieve a top-line of Rs 150 crore this fiscal.

    Founded in 2019, Simple Energy has a motor manufacturing unit within its 200,000 square feet plant located in Shoolagiri, Tamil Nadu.

    It offers ‘Simple One’ with 212 kms of certified range and ‘Simple Dot One’ electric two-wheelers with 151 kms of certified range.

    Currently in a pilot phase in Bengaluru, the startup has begun deliveries in the city, and is preparing to open dealership stores in other regions.

    “With a clear vision and a strategic roadmap mapped out for the next phase of growth, Simple Energy is primed to redefine the landscape of technologically advanced EV two-wheelers in India and beyond,” said Balamurugan Arumugam, Chief Growth Officer at Klarity, an HNI who participated in the round.

  • Grand Vitara surpasses 2 lakh sales in just 23 months: Maruti Suzuki India

    New Delhi, July 29: Maruti Suzuki India on Monday said that it sold more than two lakh Grand Vitara cars in just 23 months, setting a new benchmark in the mid-SUV space.

    The leading automaker said that it achieved the one lakh unit sales milestone in a year and added the next one lakh customers in a record period.

    Launched in 2022, the model has pioneered a new era of SUVs, as ‘Strong Hybrid’ and ‘S-CNG’ variants witness a high demand, said the company.

    “The Grand Vitara has revolutionised its segment by inspiring customers to make sustainable choices with the Strong Hybrid. The ‘ALLGRIP’ technology has also resonated well with SUV lovers,” said Partho Banerjee, Senior Executive Officer, Marketing and Sales, Maruti Suzuki India.

    “With a market share of 12 per cent in Q1 FY24, the Grand Vitara has not only established our credentials in the hyperactive mid-SUV segment but has also played a crucial role in growing the segment,” he added.

    Meanwhile, India’s automobile exports registered a robust 15.5 per cent growth in the April-June quarter.

    According to the Society of Indian Automobile Manufacturers (SIAM), Market leader Maruti Suzuki India accounted for the highest exports with 69,962 vehicles during the quarter, up from 62,857 units in the same period last year.

    Earlier this month, Maruti Suzuki India said that it is expanding the accelerator programme to include global startups, as it aims to further support the government’s ‘Make in India’ and ‘Startup India’ initiatives.

  • Simple Energy raises USD 20 million in Series A round • EVreporter

    Bangalore-based Simple Energy announced that it has raised USD 20 million in Series A funding round. This round saw participation from existing investors, including high-net-worth individuals (HNIs) from family offices like the Haran family office, Dr. A Velumani’s family office, Vasavi family office, and the Desai family office, the promoter group of Apar Industries, among others.

    According to EVreporter research, the company sold 524 units during 6 months from Jan 2024 to Jun 2024, all in Karnataka.

    The funds will be used to increase the production of Simple Energy’s key products, Simple One and Simple Dot One. The investment will also support the company’s expansion into new markets across India and the development of new products. Simple Energy aims to achieve a top line of INR 150 crore this fiscal year.

    Mr. Suhas Rajkumar, Founder & CEO of Simple Energy, said, “As the adoption of electric vehicles (EVs) accelerates significantly in India, we are committed to playing a pivotal role in this burgeoning ecosystem. The enthusiastic reception from our initial customer base in Bangalore has been truly remarkable, and we extend our heartfelt appreciation to all our investors for their trust in our brand. The capital raised will be tactically deployed to bolster our production capacity and expand our dealership network nationwide.”

    Mr. Balamurugan Arumugam, Chief Growth Officer at Klarity, an HNI who participated in the round, said, “In the realm of sustainable transportation, Simple Energy shines as a beacon of innovation and progress. With a clear vision and a strategic roadmap mapped out for the next phase of growth, Simple Energy is primed to redefine the landscape of technologically advanced EV two-wheelers in India and beyond. As the brand gains momentum, it is poised to not only capture the local market but also emerge as a globally recognized leader in sustainable mobility, resonating with individuals worldwide who value innovation and environmental consciousness.”

    Simple Energy said it manufactures 95% of its scooter components in-house and also operates a motor manufacturing line at its 200,000 sq ft plant in Shoolagiri, Tamil Nadu. The company offers the Simple One with a certified range of 212 km and the Simple Dot One with a certified range of 151 km. Currently, Simple Energy is in a pilot phase in Bangalore and has started deliveries in the city. The company plans to open dealership stores in Bangalore, Mysore, Chennai, Vijayawada, Goa, Vizag, Kochi, Mumbai, Pune, Ahmedabad, Surat, Delhi, and Hyderabad in the coming weeks.

    Also read: Simple Energy re-launches Simple One e-scooter at INR 1,45,000

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  • GLIDA Launches Hyderabad’s Largest EV Charging Hub

    GLIDA, previously Fortum Charge & Drive India, has launched a new EV charging hub in Shamshabad near Hyderabad airport.

    The hub supports simultaneous charging for 102 vehicles and includes six 200KW ultrafast chargers, twenty-eight 60KW CCS2 dual-gun DC chargers, eight 30KW CCS2 dual-gun DC chargers, twenty Type-2 7.4KW AC chargers, and two DC001 dual-gun chargers.

    Inaugurated by Industries and IT Secretary Jayesh Ranjan, this facility is the largest of its kind in Hyderabad and aims to boost electric vehicle adoption.

    Ranjan noted that the hub will build user confidence and promote the shift to electric vehicles.

    GLIDA executive director Awadhesh K. Jha added that Hyderabad was the site of the company’s first fast public EV charging station, launched with Indian Oil Corporation in July 2018.

  • Electric Mobility Promotion Scheme 2024 Extended

    The Ministry of Heavy Industries has extended and increased the budget for the Electric Mobility Promotion Scheme 2024 (EMPS 2024). Initially planned from April 1 to July 31, 2024, the scheme will now run until September 30, 2024, with the budget rising from Rs. 500 crore to Rs. 778 crore.

    The scheme aims to boost the use of electric vehicles (EVs) in India and support the local EV manufacturing industry.

    It includes electric two-wheelers (e-2Ws) and three-wheelers (e-3Ws), such as e-rickshaws and e-carts, for both commercial and private use.

    The increased budget will fund subsidies and incentives, with Rs. 769.65 crore allocated for this and Rs. 8.35 crore for administrative costs and related activities.

    The updated goals are to support up to 560,789 EVs, including 500,080 electric two-wheelers and 60,709 electric three-wheelers.

    This total includes 13,590 e-rickshaws and e-carts, as well as 47,119 L5 category vehicles. Incentives will be given only to EVs with advanced batteries.

    This scheme supports the Aatmanirbhar Bharat vision by encouraging local manufacturing and improving the EV supply chain, which will help create jobs and strengthen India’s green mobility efforts.

  • 51% of EV Owners Consider Switching Back to ICE Vehicles

    A recent Park+ survey found that 51% of Electric Vehicle (EV) owners are considering reverting to internal combustion engine (ICE) vehicles due to ongoing difficulties with EV ownership.

    The survey, conducted with 500 EV owners in Delhi NCR, Mumbai, and Bangalore, highlighted several key issues.

    Charging Stations:

    88% of EV owners were more concerned about finding accessible and functional charging stations than their vehicle’s range. Despite over 20,000 charging stations in India, problems with visibility and accessibility continue.

    Maintenance Costs:

    73% of owners find maintenance costs unclear, facing difficulties with minor repairs and trouble obtaining second opinions on repair costs.

    Resale Value:

    33% of respondents reported a significant drop in their EV’s resale value. While this may improve as the market evolves, the absence of standardised tests for EV battery quality, accounting for 30% of the vehicle’s value, remains a significant issue.

    Model Preferences:

    The TATA Nexon EV is the most preferred model, chosen by 61% of owners, followed by the TATA Punch EV at 19%. TATA EVs are praised for their design and safety, whereas BYD struggles with high prices and limited test drive opportunities

  • Indian auto component sector on robust track, to perform well in FY25: Industry

    New Delhi, July 26: With strong macro-economic indicators, conducive government policies and over 7 per cent growth projected for the Indian GDP, the auto component industry will continue to perform well in FY25, according to the industry.

    Riding on steady production, a robust aftermarket and growth in exports, turnover of the automotive component industry in India has broken all previous records, reaching $74.1 billion in FY24.

    Apart from an increase in vehicle production, higher value addition from the component sector has led to growth in the auto components sector, according to the Automotive Component Manufacturers Association of India (ACMA).

    Steady growth in the vehicle industry has resulted in the industry reaching pre-pandemic levels of performance in FY24 in most segments.

    The industry clocked a growth of 9.8 per cent in FY24 over the previous year, as exports, with a trade surplus, remain steady despite geopolitical challenges.

    According to ACMA, the auto component aftermarket grew 10 per cent to reach $11.3 billion in the last fiscal year.

    Vinnie Mehta, Director General, ACMA said that the component supply to original equipment manufacturers (OEMs) in the domestic market has grown by 8.9 per cent to Rs 5.18 lakh crore.

    Also, the supply to the EV manufacturing industry accounted for 6 per cent of the total component production in the country.

    Meanwhile, the exports went up by 5.5 per cent to $21.2 billion as imports grew by per cent to $20.9 billion.

    Auto components exports have grown despite geopolitical challenges and increases in logistics costs.

    That apart, growth in imports has been comparatively lesser, leading to a trade surplus, indicating thrust by the industry on front of localisation, according to Shradha Suri Marwah, President, ACMA and CMD, Subros.

  • Kia’s net profit up 5 pc to $2.1 bn on pricier models, weak currency

    Seoul, July 26: Kia, South Korea’s second-largest automaker, said on Friday its second-quarter net profit rose 5 per cent from a year ago, helped by the company’s sales focus on pricier models and a weak won.

    Net profit for the April-June period came to 2.95 trillion won ($2.1 billion) on a consolidated basis, compared with a profit of 2.81 trillion won a year ago, the company said in a regulatory filing.

    Operating profit reached a quarterly record of 3.64 trillion won, up 7.1 per cent from a year ago. Sales jumped 5 percent to 26.56 trillion won.

    The earnings failed to meet market expectations. The average estimate of net profit by analysts stood at 2.99 trillion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

    Kia said it sold 795,183 vehicle units during the three-month period, down 1.6 percent from last year, due to production gaps from the electrification conversion of domestic and overseas factories, insufficient inventory and the discontinuation of some small car models.

    The company, however, enjoyed improved profitability thanks to an improved product mix focusing on high-profit vehicles and improved sales in advanced markets, such as the United States.

    The company also cited reduced raw material costs and favorable exchange rates of the Korean won for the overall improved profitability, the company said.

    Domestic sales decreased 8.4 per cent on-year due to a high baseline effect from the previous year when the individual consumption tax reduction was in effect.

    On the contrary, overseas sales saw overall growth. Led by sales in North America, particularly the United States, strong demand continued, driving increased sales of major SUV models.

    Sales in Europe and India, however, faced setbacks due to the electrification transition of Kia’s plant in Gwangmyeong, south of Seoul, and aging of some of Kia’s models.

    In the second quarter, Kia’s sales of eco-friendly vehicles increased by 8.3 percent on-year to 162,000 units, despite the global slowdown in electric vehicle growth, thanks to the launch of the new EV9 and continued expansion of hybrid model sales.

    The proportion of eco-friendly vehicle sales out of total sales also rose by 2.5 percentage points compared to the previous year, reaching 21.4 percent.

    Kia said it anticipates that the challenging business environment will continue due to ongoing geopolitical risks, increased volatility from changes in leadership in major countries and weakened consumer purchasing sentiment resulting from high interest rates and inflation.

    The company said it plans to enhance profitability and increase customer value by maintaining appropriate inventory levels and operating optimal incentive strategies through a flexible production system based on market conditions and demand.

  • EMPS demand incentives on e-2Ws and 3Ws extended till end of Sep 2024 • EVreporter

    The government has extended the duration of the Electric Mobility Promotion Scheme (EMPS) 2024 by two months, to 30 September 2024, enhancing the outlay to INR 778 crores, said an announcement by the Ministry of Heavy Industries. The scheme now targets supporting 5,60,789 EVs, comprising 5,00,080 e-2Ws | 13,590 low-speed e-rickshaws and e-carts | 47,119 L5 e-3Ws. Incentives will only be extended to vehicles equipped with advanced batteries.

    The EMPS scheme was originally set to run from April 1st, 2024, to July 31st, 2024, with a total outlay of INR 500 crore. The earlier target was 3,72,215 EVs, comprising 3,33,387 e-2W and 38,828 e-3W (including 13,590 e-rickshaws & e-carts and 25,238 e-3W in the L5 category).

    Extended EMPS scheme

    Eligible e-2Ws and e-3Ws will receive a demand incentive of INR 5,000 per kWh, capped at 15% of the vehicle’s ex-factory price.

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  • Maruti Suzuki gets tax demand of Rs 779.2 cr from I-T authorities

    New Delhi: Automaker Maruti Suzuki India Ltd on Friday said it has received a demand of Rs 779.2 crore, including interest from the Income Tax authority. The company has received a final assessment order for the financial year 2019-20 from the Income Tax authority, Maruti Suzuki India Ltd (MSIL) said in a regulatory filing. The order has a total demand, including interest, of Rs 779.2 crore, it said, adding that it has also received a showcause notice for initiation of penalty proceedings with respect to the order. MSIL said it will file an appeal before the Income Tax Appellate Tribunal. There is no impact on financial, operation or other activities of the company due to this order.