In the world of urban mobility, history has a way of repeating itself. In the mid-1950s and early 1960s, BMW's Isetta—a quirky, egg-shaped microcar—helped post-war Europeans navigate their crowded cities. Today, in Pune, Vayve Mobility is channelling that same spirit of ultra-compact efficiency for the electric age. But unlike its predecessors, Vayve's vision isn't just about small cars; it's about smarter, more sustainable urban transport, powered by solar and electric energy and engineered for the realities of Indian roads.

As part of their research, the Vayve Mobility team examined over 50 different compact car designs from the past 50 years, many of which were concept cars that never reached mass production. The result of their efforts was Eva, a compact, solar-assisted electric vehicle (EV) designed for congested cityscapes. While the company has successfully built a working prototype and attracted early interest, its biggest challenge now is scaling up. With $10-15 million needed for regulatory approval and a longterm requirement of around $300 million, Vayve's future depends on securing significant investment.

A Market Ripe for Disruption

The idea of a small, affordable EV isn't new. China's Wuling Hongguang Mini EV—a tiny electric city car initially priced at just $4,700—has sold over 1.4 million units by the end of 2024, reshaping urban mobility in the country. Its Indian cousin, the MG Comet, has tried to capture a similar market, but India's EV segment remains largely skewed toward premium models, with most new launches priced above Rs 20 lakh (approximately $24,000).

 "Historically, small internal combustion engine (ICE) cars faced challenges related to vibration, noise, and thermal management, making them less viable," explains Nilesh Bajaj, CEO of Vayve Mobility. "With electric powertrains, these issues become irrelevant, making compact EVs a much more attractive solution." Despite the potential, major Indian automakers have largely ignored the segment.

Vayve, however, is convinced that demand for EVs under Rs 10 lakh will skyrocket as urban congestion worsens and fuel costs rise. The challenge? Bringing Eva to market in a way that is both cost-effective and scalable.

From Defense Tech to EVs

Bajaj's journey to automotive entrepreneurship has been anything but conventional. After earning a Master's degree from IIT Bombay in 2011, he turned down a job at Eaton to work in the Gigabit Networking Lab (GNL) at IIT, helping design communication routers for defense applications. It was here that he met his future cofounder, Saurabh Mehta, then a PhD student specialising in similar technologies.

In 2014, Bajaj and Mehta launched Vayve Technologies, a firm focused on electronic system design. Their biggest success came in the media industry—helping develop India's Television Rating Points (TRP) system for the Broadcast Audience Research Council (BARC). Between 2014 and 2020, their technology powered over 100,000 barometers (people meters) enhancing TV audience measurement systems in India.

vvBy 2020, however, Bajaj and Mehta were eager to shift from service-based projects to building their own products. The rapid rise of electric two-wheelers and three-wheelers in India convinced them that EVs were the next frontier. But instead of following the crowd, they saw an opportunity in a neglected space—small electric cars for urban mobility.

A Compact EV Built for India

The idea for Eva took shape between 2019 and early 2020, when the duo built a prototype chassis with a Bengaluru based design firm. But then, COVID-19 hit, bringing development to a halt. In 2021, Vayve Mobility was formally incorporated, and Ankita Jain and Vilas Deshpande joined the co-founding team. The company moved to Pune, leveraging the city's strong automotive ecosystem.

Over the next two years, Vayve self-funded development, fine-tuning its vehicle concept and building a production-ready model. By the time Eva debuted at the Delhi Auto Expo in 2023, the company had a clear vision—but had also learned some hard lessons. One key realisation was that a monocoque body construction is essential for crash safety and customer acceptance. Another was that vehicle classification matters—Vayve initially designed Eva as a reverse-trike (L5 category), but later switched to a fourwheeled L7 quadricycle for better stability.

Funding Hurdles and Policy Roadblocks

While Vayve has raised $1 million in early funding, the road to production is long and expensive. The company needs $10-15 million to complete vehicle certification, and much more to establish manufacturing at scale. "The overall project size for the next three years is estimated at $200-300 million," notes Bajaj. Adding to the challenge is India's EV policy framework, which currently does not offer FAME subsidies for L7- category quadricycles like Eva.

Vayve plans to push for policy changes, arguing that affordable urban EVs deserve the same incentives as larger electric cars.

Electric Taxis

As Vayve refines its ultra-compact EV, the company has also set its sights on another high-growth segment: electric taxis. Its second product, CT5, is a five-seater electric taxi designed for fleet operators. Unlike Eva, which is meant for personal mobility, CT5 is built for commercial use, with ample luggage space and a focus on durability. Bajaj has spent months speaking with fleet o

wners across India and sees a major gap in the market. Companies like BluSmart have proven that EV-based ridehailing can be profitable, yet most electric taxis available today weren't originally designed for fleets. "There are five or six major challenges, including vehicle servicing, range discrepancies, and charging infrastructure," Bajaj explains. "Fleet operators have capital but hesitate to scale due to a lack of truly optimised EVs."

Manufacturing and Global Expansion

Scaling up will require establishing a production facility, and Vayve is currently exploring locations in Maharashtra, Gujarat, and Telangana. Some states, such as Assam, have even approached the company with attractive subsidy offers to set up manufacturing.

Initially, Vayve plans to produce a few thousand units of Trim, Chassis, and Finish (TCF) per year at its Pune plant. But in the long run, the company aims for a full-fledged factory with the capability of manufacturing 100,000 units annually. Beyond India, export markets hold significant potential.

Many emerging economies in Southeast Asia, Latin America, and Africa have urban mobility challenges similar to India's. Since Eva is designed to meet European L6 and L7 regulations, it could also be positioned for global markets from day one. While India has world-class auto manufacturers like Tata and Mahindra, very few new car OEMs have emerged in recent decades.

Meanwhile, China has produced over 200 EV startups in the past ten years. "We believe it's time for India to step up and compete on the global stage," Bajaj says. Whether Vayve Mobility can turn Eva into India's answer to the Wuling Mini EV—or even build the country's first globally competitive electric taxi—will depend on its ability to secure funding and scale up fast. For now, the road is open, but the journey is just beginning.