Indian consumers electronics company Micromax is reportedly planning to enter the electric vehicle and battery manufacturing space. According to an ET Telecom report, the company is currently in the advanced stages of completing the testing formalities to create Micromax Electric Vehicles.
The report also states that the company has already received approval for some of their lithium battery categories too.
The Indian company has been struggling in the smartphone sector for quite some time. Companies like Xiaomi seem to be beating them with their budget smartphones. The company is also seeing a dip in its market share. The company has already dipped into the home appliances category with TVs, and air conditioners.
Manufacturers like Xiaomi, Vivo, and Oppo have made their way to the top alongside leader Samsung. Chinese smartphone companies have clearly edged out Micromax– who earlier was number two in the market.
ET had reported that their sources have informed them about the company’s aim to enter into the two and three-wheeler electric vehicles category. It is being widely reported that the company is already in the testing procedure of the vehicle prototypes. Meanwhile, they have already received certification for lithium batteries for autos and e-rickshaws. According to the source, Micromax is currently in talks with investors regarding funding.
Rajesh Agarwal (co-founder of Micromax) confirmed the speculated reports and told ET, “We’re looking into electric vehicles, but it’s still early days. We’re talking to technology partners.”
An anonymous Micromax source also told ET, “there are very limited players in the three-wheelers segment — Bajaj Auto, Mahindra & Mahindra, TVS and Piaggio Ape — while the e-rickshaw market is largely unorganized. Scope in electric two-wheelers segment is very wide. With the government’s focus on promoting e-mobility, we expect the electric three-wheelers and two-wheelers to pick up quickly.” He also elucidated that once the prototypes receive approval from the authorities, Micromax will establish a manufacturing unit.
The company is trying to tap into an e-rickshaw category which is big, but disorganized. This is a huge opportunity for the company as the right moves could skyrocket it to a better position.
To encourage green alternatives, under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, the center is considering allowance of fiscal and other incentives for e-vehicles.
Also, electric vehicles are seeing a boost in metros and other cities. This move could help Micromax to rebuild their stand in the technology market, and keep a foothold in the market.