Zapp’s first electric two-wheeler is launching in the U.K. next month
Zapp Electric Vehicles wants to turn its London-based electric two-wheeler brand into a global EV company. And India will be one of its launchpads, TechCrunch has exclusively learned.
The company will launch its first product — an urban electric two-wheeler called the i300 — in the UK as early as next month, followed by Thailand. The company is now adding India into the mix, a massive market that will provide a true test to its international global expansion strategy, Zapp founder and CEO Swin Chatsuwan told TechCrunch in an interview.
The Nasdaq-listed company advanced its plans for India after Chatsuwan noted the country’s potential. The world’s most populous country not only witnesses millions of two-wheeler sales annually, it’s also the second-biggest two-wheeler manufacturer worldwide after China.
“We thought India would be phase two for us when we did our research a few years ago, but we made a decision earlier this year that it can’t wait,” Chatsuwan said.
Zapp has named Indian electric two-wheeler maker Bounce Electric 1 as its contract manufacturer to produce and sell the i300 locally in the country. After completing the homologation process, sales are expected to begin in 2025. The British company aims to have a minimum capacity of 5,000 units per year in India as part of its broader global goal of 25,000 units by 2026.
Of the 17 million two-wheelers sold in India last year, Chatsuwan told TechCrunch that 2.8 million were high-speed vehicles, and 36% of those high-speed vehicles were heavy-weight cruiser motorcycles from the Chennai-based brand Royal Enfield. Zapp wants to duplicate Royal Enfield’s success with its step-through model, which was unveiled first in 2018.
“We’re not trying to conquer the world. We’re not trying to take half Royal Enfield’s market share and sell 500,000 bikes in India. We’re not. We would see that our quality and performance peer is BMW, particularly their CE 02 and CE 04 step-through electric scooters,” the executive told TechCrunch.
The India launch of Zapp’s i300 will help the company expand its total addressable market (TAM) of 60 million units annually by 25%. By adding India to the map, the TAM of its first phase of market debut has reached 30 million annually, the company said.
The early launch in India will help Zapp understand the “breadth, depth and quality” of the country’s supply chain, Chatsuwan stated. This may help export vehicles from India to global markets over time.
Unlike electric two-wheelers by key Indian manufacturers Ola Electric, TVS Motor and Ather Energy that sell between $1,000 and $1,800, Zapp’s i300 will be a pricey option. The two-wheeler will debut in Europe with a base price of $7,590, excluding taxes.
The India pricing is yet to be decided, though Chatsuwan said it wouldn’t be “more than a million rupees, but I doubt it will be lower than 500,000 rupees.”
The i300 is hitting the streets soon
Zapp unveiled the i300 as its first two-wheeler in 2018. The vehicle comes with an aerospace-grade alloy load-bearing exoskeleton and a chrome-moly steel underbone design. It also carries an air-cooled electric motor with a peak power of 14kW and packs two portable batteries, each with 720Wh capacity.
The company started taking pre-orders for the i300 soon after its unveiling, charging a reservation fee of 100 euros. It promised to begin deliveries in the fourth quarter of 2019. However, the COVID-19 pandemic halted production and deliveries.
Nonetheless, Zapp is set to start delivering the i300 in the U.K. in the next few weeks. It also plans to begin selling in Thailand this year through a facility in Bangkok.
Zapp set to become ‘complete motorcycle company’
“We’re not a one-hit wonder. We want to show the world that we’re a complete motorcycle company, but let’s begin with executing the first product first,” Chatsuwan told TechCrunch when asked whether Zapp looks to expand its product lineup.
The company also plans to stack up the i300 with “loads of” personalization options and accessories. It already offers the two-wheeler in four distinct versions and lets consumers customize its color and wheel design based on their preference and add accessories, including a hidden storage and fast charger.
Zapp plans to expand its market by entering Spain, Italy, Vietnam and Indonesia in phase two and expand to countries in the Middle East and South America over time.
“We want to be the 21st-century version of Triumph and Royal Enfield and Norton,” Chatsuwan said.
Market Potential in India
Large Market Size:
India's population is one of the largest in the world, with over 1.4 billion people. This massive population means a significant and growing demand for transportation. As more people seek personal mobility solutions, the potential market for electric vehicles (EVs) is vast.
Environmental Concerns:
There is a growing awareness of environmental issues in India, including air pollution and climate change. The government and the public are increasingly recognizing the need for sustainable transportation solutions. This awareness is driving interest in EVs as they produce zero tailpipe emissions and help reduce pollution levels in urban areas.
Urbanization:
India is undergoing rapid urbanization, with more people moving to cities and towns. This urban growth is creating a need for efficient and sustainable urban mobility solutions. Electric vehicles, with their lower operating costs and suitability for short commutes, are well-positioned to meet this demand.
Zapp EV's Strategy
Affordable Pricing:
To succeed in the price-sensitive Indian market, Zapp EV plans to offer competitively priced electric vehicles. By focusing on affordability, Zapp EV aims to attract a broader range of consumers, including middle-class families and urban commuters who are looking for cost-effective transportation options.
Local Partnerships:
Zapp EV understands the importance of local expertise and infrastructure. Therefore, the company plans to collaborate with local companies for manufacturing, distribution, and service support. These partnerships can help Zapp EV scale up quickly and ensure that their vehicles meet local standards and consumer preferences.
Government Incentives:
The Indian government is actively promoting the adoption of electric vehicles through various incentives and subsidies. Zapp EV intends to leverage these government initiatives to make their vehicles more attractive to consumers. This includes benefits such as lower taxes, subsidies for EV purchases, and incentives for setting up charging infrastructure.
Challenges and Considerations
Infrastructure Development:
One of the significant challenges for EV adoption in India is the lack of a robust charging infrastructure. Zapp EV will need to work on establishing a widespread and reliable network of charging stations to alleviate range anxiety among potential customers. Partnering with local businesses and governments to develop this infrastructure will be crucial.
Consumer Awareness:
Educating consumers about the benefits of EVs is essential. Zapp EV plans to run awareness campaigns to inform potential buyers about the advantages of electric vehicles, such as lower running costs, reduced maintenance, and environmental benefits. Addressing common concerns, such as range anxiety and charging times, will also be a focus.
Competition:
The Indian EV market is becoming increasingly competitive, with several established players and new entrants. Zapp EV will need to differentiate itself through innovative features, quality, and customer service. Building a strong brand reputation in this competitive landscape will be key to their success.
Global Expansion Plans
Diverse Markets:
While India is a significant focus, Zapp EV's global expansion strategy includes exploring opportunities in other emerging markets with similar characteristics. Countries in Southeast Asia, Africa, and South America, where there is a growing middle class and increasing urbanization, may also be potential markets for Zapp EV.
Brand Recognition:
Building a strong global brand is a priority for Zapp EV. This involves consistently delivering high-quality products and services and highlighting their innovative features. A strong brand can help Zapp EV establish trust and recognition in new markets, making it easier to attract customers and partners.
Sustainability Focus:
Zapp EV emphasizes the environmental benefits of electric vehicles, which appeals to eco-conscious consumers worldwide. By positioning their vehicles as a sustainable choice, Zapp EV can tap into the growing demand for green transportation solutions and align with global trends towards reducing carbon footprints.
By focusing on these strategies and addressing the challenges, Zapp EV aims to establish a significant presence in the Indian market and beyond, contributing to the global shift towards sustainable mobility.
Post a Comment