RR Global to invest Rs 125 cr in electric scooters business in three years

Company says it has identified 108 cities in southern and western India-the two regions it will focus on first--for setting up distribution centres for its scooters

RR Global, a $800 million electrical company, will enter India's two-wheeler electric vehicle (EV) segment, it said on Wednesday.

The company plans to produce 80,000 units in Financial Year 2020-21 as its plant in Chakan in Pune scales up manufacturing. RR Global is entering the business with its venture BGAUSS, which has its roots in manufacturing motors, controllers, and wire harness.

Hemant Kabra, director of RR Global Founder and managing director of BGAUSS, said the company plans to invest Rs 125 crore in the EV business in three years. 

 

"We believe entering into the electric vehicle pace is just a forward integration to the business. We are currently in the endurance stage with a couple of our units which will be ready by next year," said Kabra.

The company has more than 6,000 dealers and distributors in India and it aims to use its strength in products like motor controller and harness for the new scooters business. "We have customised our products to the Indian condition at this point in time. Like the braking system, headlight for the Indian style, seat, mirror according to the Indian ARAI standard, but in 9 to 12 months we will go to 100% localisation," said Kabra, referring to a quality control.

The company said it is working on two new designs and plans to launch them by October next year. It has identified 108 cities in southern and western India—the two regions it will focus on first--for setting up distribution centres for its scooters.