New Delhi: With sales of electric vehicles gaining momentum, the electric motorcycle market remains a niche area with limited competition. Startups such as Oben Electric, Ultraviolette, Revolt, Tork Motors, and others have ventured into this space.
The Bangalore-based startup, Oben Electric, today launched its daily commuter electric motorcycle, the Rorr EZ, priced at INR 90K. The company relies on its in-house manufacturing capabilities to build a strong presence in the market.
Oben Electric designs and produces all the critical components, including batteries, motors, chargers, and vehicle control units, and assembles them at its Jigani plant. “Through this method, we can make our products more affordable while incorporating the latest features and technology,” said Madhumita Agrawal, Founder and CEO of Oben Electric, in an interview with ETAuto.
LFP (Lithium iron phosphate) batteries
The battery used in any electric vehicle is a crucial aspect of the product. Oben Electric uses LFP batteries, which are also utilised in passenger vehicles, to make its products more affordable, efficient, and heat-resistant.
“LFP batteries don’t contain nickel and cobalt, which makes them more sustainable than the commonly used NMC batteries,” said Agrawal. Additionally, LFP batteries offer nearly double the life cycle compared to NMC batteries, she added.
These batteries are also more resistant to heat, offering customers a safer choice for travel on hot days. However, due to their larger size compared to NMC batteries, they can be challenging to fit in a two-wheeler, noted Agrawal.
Fundraising and expansion plans
The Bangalore plant, which currently manufactures 400-500 bikes per month, has the capacity to produce up to 1 lakh motorcycles annually. The company plans to launch another product in the 100cc segment in Q4 of FY2025, targeting a diverse range of electric motorcycles (150cc, 125cc, and 100cc), said Agrawal.
To support this growth, the company is seeking additional funding, aiming to raise USD 50-60 million over the next two years. Initial expansion targets include locations in Pune, Gujarat, Hyderabad, and Rajasthan.
It remains to be seen whether a startup can establish a significant presence in a market with limited major OEM competition. Notably, Royal Enfield recently showcased its first electric motorcycle during the EICMA 2024 show.
To learn more about the electric vehicle ecosystem and meet the key industry leaders, click here.
