Ultraviolette, the electric bike maker, is calling for increased government benefits for companies working on high-tech and premium products. According to the co-founders, such support could not only drive exports from India but also elevate the technology benchmark of the local electric vehicle ecosystem.
While Ultraviolette recently launched the newest version of its flagship bike, the F77, it has not received any benefits under the Production Linked Incentives (PLI) or the Faster Adoption & Manufacturing of Electric Vehicles (FAME) subsidies due to its higher pricing, starting above Rs 3 lakhs in India. However, the company is optimistic about receiving benefits related to exports as it expands into European Union (EU) markets, including Turkey, Spain, and Germany later this year.
Narayan Subramaniam, the co-founder and chief executive of Ultraviolette, emphasizes the importance of having a few firms in the ecosystem that constantly push the boundaries of technology to raise the baseline of tech quality in the industry. This, in turn, will drive increased exports of Indian technology and products abroad. Subramaniam believes that the demand for quality in western markets surpasses any regulatory barriers, and Indian products need to convince such markets in order to succeed.
Ultraviolette is not the only Indian electric vehicle company expanding into international markets. Others, like Ather, are also venturing into the global arena. Additionally, the shift of research and development facilities by automobile and advanced tech firms to India has provided Ultraviolette with access to talent and expertise, allowing the company to benefit from such a shift over the past decade.
As Ultraviolette prepares to enter EU markets, it has already established dealership and distribution contracts across several countries. The company may also receive local benefits in these markets to support electrification initiatives. The latest version of Ultraviolette’s flagship bike, the Mach 2, boasts improved features and a battery warranty of 8 lakh kilometers, similar to that offered by electric scooter market leader Ola Electric.
In terms of pricing, the bikes will range between 9,000 euros (Rs 8.19 lakhs) and 11,000 euros (Rs 10.01 lakhs) in the EU markets. In India, the introductory price is Rs 3 lakhs, applicable to the first 1,000 customers, with deliveries scheduled to commence next month.
Looking ahead, Ultraviolette aims to rapidly scale up sales to 5,000-6,000 vehicles by the end of the financial year 2024-2025. The company also plans to increase its monthly manufacturing capacity to 1,000 vehicles by the same period, with an overall production capacity target of 3,000 vehicles per month.
Despite being a capital-intensive business, Ultraviolette has managed to achieve profitability at a gross margin level with only $60 million in funding. The company is currently in talks to raise additional funds in the next six months to support its expansion into the EU market.
Ultraviolette, the electric bike maker, is part of the growing electric vehicle industry in India. The industry has been gaining momentum in recent years due to increasing government support and incentives, as well as a growing focus on sustainability and clean transportation.
The market for electric vehicles in India is expected to witness significant growth in the coming years. According to a report by TechSci Research, the Indian electric vehicle market is projected to grow at a compound annual growth rate (CAGR) of over 23% during the forecast period of 2021-2026. Factors such as favorable government policies, increasing awareness about environmental issues, and rising fuel prices are driving the growth of the market.
However, the electric vehicle industry in India still faces some challenges. High prices, limited charging infrastructure, and low consumer awareness are some of the key issues that need to be addressed. This is where government support plays a crucial role. By providing incentives and subsidies, the government can help make electric vehicles more affordable and accessible to a larger section of the population.
The Production Linked Incentives (PLI) and Faster Adoption & Manufacturing of Electric Vehicles (FAME) subsidies are two important government schemes that aim to promote the adoption of electric vehicles in India. These schemes provide financial incentives to manufacturers and consumers, which can help reduce the upfront cost of electric vehicles and drive demand.
While Ultraviolette has not received benefits under these schemes due to the higher pricing of its flagship bike, it is optimistic about receiving benefits related to exports. Expanding into international markets, such as the European Union (EU), can help the company tap into a larger customer base and achieve economies of scale. Ultraviolette has already established dealership and distribution contracts in EU countries and may receive local benefits to support electrification initiatives.
Ultraviolette is not alone in its expansion into international markets. Other Indian electric vehicle companies, like Ather, are also venturing into the global arena. This trend indicates the growing global demand for Indian electric vehicles and the potential for the Indian electric vehicle industry to become a significant player in the international market.
As Ultraviolette prepares to enter EU markets, it aims to rapidly scale up its sales and manufacturing capacity. The company has set ambitious targets of selling 5,000-6,000 vehicles by the end of the financial year 2024-2025 and increasing its monthly manufacturing capacity to 1,000 vehicles. Meeting these targets will require additional funding, and Ultraviolette is currently in talks to raise funds to support its expansion plans.
In conclusion, Ultraviolette’s expansion into international markets and its focus on high-tech and premium products reflect the growth and potential of the Indian electric vehicle industry. Government support, market forecasts, and addressing industry-related issues will play a vital role in driving the success of the industry and achieving the vision of a sustainable and green transportation ecosystem.
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