(MENAFN- NewsBytes)
Micromax exploring electric vehicles business amid competitive smartphone market
24 Apr 2018
Indian smartphone manufacturer Micromax is reportedly looking to enter the electric vehicles and battery manufacturing business.
This comes as a move to diversify its products as the Indian smartphone market has become hyper-competitive with brands like Vivo, OPPO, and Xiaomi.
Further, Micromax has also seen a dwindle in the market share of its smartphone business and wants to reduce its dependency on the same.
Micromax testing its e-vehicles, lithium-ion batteries
Details
Micromax will most likely enter the two-wheeler and three-wheeler electric vehicle segments.
It has reportedly gotten government certification for testing its prototype e-rickshaws and e-autos along with the lithium batteries that will power the vehicles.
The e-vehicles are in the advanced stage of being tested. Notably, the company already sources lithium batteries in the country for its phones.
Electric three-wheeler and two-wheeler segment is untapped, unorganized
Fact
A company representative said, "There are limited players in the electric three-wheeler 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."
Micromax looking for funding, location to set up factory
Way Forward
The Gurugram-based mobile phone maker is reportedly in talks with various investors for funding.
It is also looking to finalize a location for setting up a production plant, which will most probably in an area where ancillary automobile industry manufacturers can be tapped.
"The facility has to be supported by the ecosystem existing at places like Pune, Bangalore, or Chennai," the company executive said.
Whats is the government doing for e-vehicle adoption
Fact
Under the government's Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME) scheme, electric vehicles might be provided with fiscal incentives like waiver of registration and road tax on their sale. Manufacturers might also be offered some incentives.
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