The Telangana-based electric two-wheeler maker has big expansion plans this year and hopes to take its output to 50,000 units from 6,000 last year.
20 Jul 2024 | 2662 Views | By Amit Vijay M
Telangana-based EV maker Quantum Energy is hoping that FY25 will be a pivotal one for its business. The two-wheeler maker is planning to increase its output to 50,000 units/year by the end of this financial year, from just 6,000 last year. Quantum is one of the few OEMs that have ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Telangana-based EV maker Quantum Energy is hoping that FY25 will be a pivotal one for its business. The two-wheeler maker is planning to increase its output to 50,000 units/year by the end of this financial year, from just 6,000 last year. Quantum is one of the few OEMs that have been approved to qualify for incentives under the Rs 500 crore Electric Mobility Promotion Scheme (EMPS scheme). The scheme provides a subsidy of up to Rs 10,000 per twowheeler and Rs 25,000 per e-rickshaw.
Benefitting from the EMPS scheme, the company officials said they are seeing growth from its B2B and B2C segments, with combined sales of 10,000 units in the first four months of the current fiscal year.
At the same time, the company has aggressive plans to expand its product offerings by adding new products to its B2C Plasma electric two-wheelers and Bziness electric scooters, which are aimed at e-commerce fleet deliveries. The company has seen increased demand from fleet operators due to the growth of India's gig economy, with partnerships with various fleet operators such as ScooEV, Bijliride, BluWheelz, Bike Bazaar, Hala Mobility, Zevo, Green Drive Mobility, and South-based grocery retail firm Ratnadeep Group.
Quantum is also considering manufacturing electric three- wheelers, with the new product in "an advanced stage of prototyping."
Fresh Capex Investments
The EV startup is planning an aggressive capacity expansion by adding manufacturing capabilities at its current facility in Pashamylaram, Patancheru Mandal, Sangareddi District, Telangana. The facility currently has a total installed capacity of 50,000 units. The promoters intend to invest over Rs 100 crore in a new facility near the Hyderabad Airport Electronic City, increasing the installed capacity from 50,000 units to 120,000 units. Quantum is also in the advanced stages of entering the battery-swapping space with an alliance with Sun Mobility and is planning to introduce its first batteryswapping electric two-wheeler based on the Quantum Bziness platform.
In terms of battery technology, Quantum has collaborations with firms like Log9 and Battery Smart, where their Bziness and Bziness Plus scooters are being used with removable batteries supported by the solutions provided by these battery makers.
Chakravarthy C, MD of Quantum Energy said, “Understanding the needs of a delivery rider, we have introduced a new product with a removable LFP battery that has a range of 130 kilometres and a battery that can be charged at home, backed by an industry-first 90,000 km warranty.
Network Expansion
Quantum has a significant presence in South India, specifically Andhra Pradesh, Tamil Nadu, and Karnataka. The company plans to expand its pan-India footprint by opening dealerships in Rajasthan, the Delhi NCR region in the north, and Bihar. They have also built new dealerships in Maharashtra besides foraying into East India, opening stores in Odisha, Jharkhand.
Sharing their network expansion plans. Chakravarthy C added, "At Quantum Energy, we believe in going step-by-step, stage-by-stage, going to one market, focusing, and once you attain some kind of clarity, then reach out to other markets. For us, it is a staggered but sure-footed move." The company also wants to eventually go for a $10 million Series A funding round to expand its two-wheeler business in the passenger and cargo e-auto markets over the next 48 to 36 months.
Speaking with Autocar Professional, Chetana C, Director of Quantum Energy said that the “fundraise will support the introduction of new products in the B2C space and consolidate their position in the B2B space."
This feature was first published in Autocar Professional's July 15, 2024 issue.