EMOTORAD ANNOUNCES WORLD'S BIGGEST INTEGRATED ELECTRIC CYCLE GIGAFACTORY: A CONVERSATION WITH CO-FOUNDER AND CEO KUNAL GUPTA
EMotorad, a prominent player in the electric cycle market in India has laid out ambitious expansion plans that involve the establishment of a state-of-the-art facility spanning 2,40,000 square feet in Pune, as part of phase one. This move aims to enhance their manufacturing capabilities and cater to the growing demand for electric cycles globally.
The gigafactory will focus on producing essential components such as batteries, motors, displays, and chargers, with an initial capacity of 5,00,000 electric cycles annually. Scheduled to commence operations in August this year, the project will be executed in four phases, making it South Asia’s largest integrated e-cycle gigafactory and the largest outside of China upon completion.
EMotorad is committed to adopting cutting-edge Industry 4.0 standards, integrating digital technologies to streamline manufacturing processes. This includes leveraging data, connectivity, analytics, and robotics to ensure efficiency and quality in production.
The expansion initiative was made possible through strategic funding secured by EMotorad in its series B financing round earlier this year. Notable investors such as Panthera Group, Xto10x, and former Indian Cricket Captain Mahendra Singh Dhoni participated in this funding round.
EMotorad is gearing up to showcase its capabilities on a global stage, with plans to participate in major expos including Eurobike in Frankfurt, Germany, in July 2024. This strategic move underscores India's emergence as a key player in the electric cycle industry and EMotorad's commitment to driving innovation and sustainability in the sector.
Here is an in-depth conversation with co-founder and CEO Kunal Gupta.
PD: Could you provide more insight into the decision to expand EMotorad's manufacturing capabilities with the launch of the world’s largest e-cycle gigafactory? What market trends or demand signals prompted this strategic move?
Kunal Gupta: Ecycle is the highest-sold EV units compared to cars and scooters, the growing global demand has already accumulated most of our 90K capability we expanded 2 years back. The mission is to make from India for the world, the world demands innovative and reliable production which can only be scaled with an in-house facility. We want to capture a substantial amount of the already 40+ billion USD ecycle market across the globe. The surging global demand for e-cycles, consumer preference for green mobility, government incentives, tech progress, and market growth prospects spurred us into action.
PD: The gigafactory is planned to be constructed in four phases. Can you elaborate on the timeline and milestones for each phase? What challenges do you anticipate during the construction and ramp-up process?
Kunal Gupta: The gigafactory is a massive project, and we are quite aware of its enormity. The gigafactory is divided into four phases, each representing the expansion of manufacturing capability. Expanding on our existing infrastructure, phase 1 begins with in-house manufacturing and production of the motor, battery, charger, and display, with an initial e-cycle production capacity of 500,000 annually across six assembly lines. Phase 2 will commence with the expansion of in-house frame components and the addition of 2 assembly lines. Phase 3 involves manufacturing mechanical components with multipurpose units, and we are too early to predict on the size and requirements of phase 4 which will depend upon the productivity of the three phases and requirements of the market, however, phase 4 will enable further enhancement in the total manufacturing capacity. We are still 4 years away from phase 4 which we believe might turn out even bigger than what we plan today.
PD: How does EMotorad plan to integrate Industry 4.0 standards into the gigafactory's operations? What specific technologies or processes will be implemented to enhance efficiency, quality, and agility in manufacturing?
Kunal Gupta: We're integrating Industry 4.0 into our gigafactory operations using IoT devices and sensors to gather real-time data, this will help optimise processes and reduce downtime in a very big way. Phase 3 will also enable the use of robotics and automation for quality checks and efficiency will be in place. Data analytics, which has always been a part of decision-making, will continue to do so. We believe that to move forward, one has to move forward with time and the technologies that the world has to offer, hence AI will definitely play a huge part in optimising processes and predicting maintenance needs. Additionally, we will also be integrating our supply chain digitally to improve visibility and agility with a robust cybersecurity measure in place to protect our digital infrastructure. These strategies aim to keep us more competitive than ever.
PD: With the initial capacity of 500,000 electric cycles per year, how does EMotorad plan to scale production to meet growing demand while maintaining product quality and innovation?
Kunal Gupta: Yes with Phase 1 the plan is to grow to meet the demand we anticipate, Phases 2 and 3 will further add to our capacity while also enabling the in-house production of the additional componentry that we find critical to our innovative drive train technology. This will help us maintain quality through rigorous control measures. Our focus will be to keep innovating unique products that keep exceeding expectations like we always have through R&D, and having a flexible manufacturing system in place so it enables us for quick adjustments to meet the market demand.
PD: What are the key features and performance metrics of the advanced Gen-2 platforms that EMotorad's e-cycles are built on? How do these platforms differentiate EMotorad's offerings in the market?
Kunal Gupta: Our Gen-2 platforms that underpin our e-cycles are based on our advanced drive train technology and our software capability of AMIGO. Our latest ecycles have advanced components that offer cutting-edge technology for up to 20% efficiency optimisation on the drive train technology, extended range and quick charge, ensuring convenience and reliability. Our e-cycles also boast highly efficient motors for powerful yet energy-efficient performance. Additionally, we showcased AMIGO technology in our launch event last year is all set to hit the market by the end of this year which will enable all our e-cycle users to use smart connectivity, track rides, monitor battery status, with different levels of pedal assist technology, to help the rider cruise through any terrain effectively. Dual disc brakes with auto-cut-off in every model make it as secure as it looks. Our Gen-2 e-cycles comply with international standards for enhanced safety and performance.
PD: Could you elaborate on EMotorad's expansion strategy for penetrating European and North American markets? What factors will be critical for success in these regions?
Kunal Gupta: Our strategy for entering European and North American markets is simple, adapting our products to local preferences. We conduct thorough market research and are always on a lookout to form strategic partnerships that help us penetrate the market abroad better. Besides this, ensuring regulatory compliance and establishing a strong distribution network will be a core focus to build brand awareness. Last but not least, providing excellent customer support and effectively executing these strategies to deliver high-quality products remains a priority, whether abroad or in the local markets. Our cost-efficient range and production capabilities further strengthen our expansion.
PD: The Series B funding secured earlier this year played a strategic role in funding the factory expansion. How does EMotorad plan to utilise these funds to drive growth and innovation within the company?
Kunal Gupta: The substantial share of our last funding goes on for R&D and Manufacturing expansion which helps us with our plans to scale us to a production capacity of 500,000 e-bikes per year to meet the global demand of a 40+ Billion USD global market in the segment.
PD: EMotorad has shown remarkable growth over the past four years, achieving 370% domestic growth last year alone. What do you attribute this success to, and how do you plan to sustain this momentum in the future?
Kunal Gupta: We are thankful to our customers for believing in us and we remain to be the highest-rated products across platforms by a margin, this is all down to the teams efforts and our relentless focus on innovation, quality, customer satisfaction, and the never say never attitude of an amazing team at EM.
The idea isn't about gaining the market share anymore, it is about growing the market and we are now doing it with MS being our ambassador, the awareness campaign we have launched and how we are constantly scaling our dealerships which are now more than 350 across India.
PD: Can you provide more details about the cost-effective X-factor range and cutting-edge drivetrain technology recently launched by EMotorad? How do these innovations contribute to maintaining competitiveness in the market?
Kunal Gupta: EMotorad is a premium e-cycle brand, but we also realised we want to be accessible as well. With our product expertise, we launched our X-factor range that makes having an e-cycle budget-friendly while still providing a quality experience. Xfactor remains to be the most sold ecycle across India.
The drive train technology has just improved with the addition of our R&D and tech teams in the last 2 years and the launch of our R&D centre in Bangalore. We believe the efficiency and reliability of the technology we will offer will not only meet world standards but be all set to make a name for Indian products across the globe.
PD: Lastly, what are EMotorad's goals and expectations for participation in upcoming expos such as Eurobike in Frankfurt, Germany? How do you envision these events contributing to the company's global visibility and market expansion efforts?
Kunal Gupta: We are proud to be one of the only players to represent India in global events like Eurobike over the last 3 years. This expo brings the world’s best manufacturers on one platform to showcase their prowess in e-bikes. Our aim is to announce to the world that India has arrived and how our high-quality ‘Make in India’ products are all set to disrupt the global e-bike markets. Eurobike provides us with an excellent platform to reach out to market players to create synergistic relationships across the world, and we hope this paves the way for us to launch our products into newer markets.