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Tenneco Clean Air India’s Turnaround Journey Towards IPO

Shahkar Abidi — Fri, 07 Nov 2025 20:40:32

The transformation began quietly in 2022, far from the glare of public markets. When Apollo Global Management acquired Tenneco Inc. for $7.1 billion in November that year, pulling in the struggling American automotive supplier, few anticipated the sweeping changes that would ripple through to its Indian operations. What followed was not merely a financial restructuring but a fundamental reimagining of how the company would compete in one of the world’s fastest-growing automotive markets.

Today, Tenneco Clean Air India Ltd stands poised for its market debut, having increased its initial public offering to ₹3,600 crore from an earlier ₹3,000 crore, aiming for a valuation of over ₹16,000 crore at the upper end. The offering is entirely an offer-for-sale by promoter Tenneco Mauritius Holdings, which means that the company will not receive any proceeds from the IPO.

The mandate during the turnaround was clear: transformation. Under the subsequent leadership of CEO Jim Voss, the company embarked on a complete overhaul that blended structural and cultural reorganization. This mandate extended to a comprehensive transformation of the entire Profit & Loss (P&L) statement, encompassing cost elements like raw material cost, conversion cost, fixed costs, indirect material, automation, and labor cost.

A critical structural shift took place in the Indian operation too — a move from vertically separated business units (BUs) to a unified regional structure, in addition to other measures. This organizational change immediately yielded financial opportunities by facilitating cross-selling and allowing the company to leverage relationships with one product and one customer to sell another product to the same customer. This cross-selling efficiency is expected to drive top-line growth and offset the impact of year-over-year price reductions often negotiated by customers. Internally, the new framework includes specialized mechanisms like the Office of Strategic Execution (OSE), a dedicated team responsible for driving rapid change by targeting reductions in the cost of goods sold and enabling revenue growth through volume targets and pricing strategy.

“Tenneco has always been a great technology company. But what has happened in the last two to three years is that the company has transformed not only as a technology company but also into a company of operational excellence,” said Rishi Verma, President (India), Tenneco Clean Air India Ltd, while reflecting on his 18-year journey with the company. He spoke during a pre-IPO press briefing.

The Turnaround Numbers

Arvind Chandrasekharan, Whole-time Director and CEO of Tenneco Clean Air India, provided a strong overview of the company’s financial health, emphasizing profitability, asset efficiency, and the positive impact of recent strategic changes. “This story is very important because India has also benefited from that culture change. India’s EBITDA performance improved 400 basis points in the last three years because of this culture change,” he noted. Tenneco established manufacturing operations in India in 1995.

According to company documents, its revenue from operations was ₹4,827 crore in fiscal year 2023. This figure rose to ₹5,468 crore in FY24, reflecting a period of expansion, before easing back to ₹4,890 crore in FY25. Despite the dip in revenue, the company’s profit after tax painted a very different picture — a consistent and robust upward climb across the same period. Starting with ₹381 crore in FY23, profits increased to ₹417 crore in FY24 and surged further to ₹553 crore in FY25.

More striking are the return metrics. The company’s return on capital employed (ROCE) reached 56.78% in fiscal 2025, up from 45.40% in FY24 and 33.51% in FY23, placing it among the most capital-efficient players in India’s automotive component sector, where the average ROCE stands at around 27.5%.

Based on a CRISIL report, Tenneco Clean Air India stands as the largest supplier of clean air solutions to Indian CV OEMs, with a market share of 57%, and to Indian OH OEMs (excluding tractors), with a market share of 68%. It is among the top four suppliers of clean air solutions to Indian PV OEMs, with a market share of 19%, and is the largest supplier of shock absorbers and struts to Indian PV OEMs, with a market share of 52%. While the company’s clean air and powertrain solutions contribute 52.6% of revenue, the advanced ride technologies division contributes the remaining 47.4%.

It boasts 12 manufacturing facilities strategically located near key OEM hubs in India, comprising four manufacturing facilities for clean air solutions and five manufacturing facilities for advanced ride technologies products. The company counts several leading vehicle manufacturers, including Maruti Suzuki, Ashok Leyland, Hyundai Motor, Mahindra, and Tata Motors, among its customers.

Tenneco Clean Air India operates in an intensely competitive market populated by global tier-one suppliers including Bosch, Timken India, SKF India, ZF Commercial Vehicle Control Systems India, Gabriel India, and Uno Minda, among several others. Its competitive advantages rest on long-standing customer relationships — the top 10 customers have partnered with the company for an average of over 19 years and access to Tenneco Group’s global intellectual property portfolio of over 5,000 patents and 7,500 trademarks.

The Global Parent’s Journey

Understanding the Indian unit’s transformation requires context from the US-based parent company’s recent history. Tenneco’s path through the early 2020s was marked by financial stress exacerbated by the Federal-Mogul acquisition in October 2018, which doubled the company’s size but also its debt burden. When Apollo announced the acquisition in February 2022, Tenneco’s shares were trading at $9.98; the private equity firm offered $20 per share, taking the company private in a transaction valued at approximately $7.1 billion including debt.

The parent company currently boasts revenue of $16,777 million in CY24. It has an employee strength of around 59,400 globally, along with 180 manufacturing plants and 39 R&D and technical centers.

“India continues to be a critical growth engine for Tenneco,” said Jim Voss, CEO of Tenneco, in May 2025 when appointing Chandrasekharan as CEO of India operations. Chandrasekharan, who previously served in senior positions at Delphi, Faurecia Exhaust Systems, Wabco Europe, Motherson Sumi Wiring India, and Minda Corporation, among others, was tasked with accelerating business growth, driving innovation in lightweight and cost-effective solutions, and positioning India as a global hub for manufacturing.

Export Ambitions and Global Manufacturing

Tenneco’s strategy for India extends beyond serving the domestic market, capitalizing on India’s emergence as a global manufacturing hub for automotive components. Currently, exports constitute approximately 3% of turnover in FY24.

This ambition aligns with broader trends in India’s automotive sector. The country’s auto component industry is projected to reach $200 billion by 2030, with exports of $70–100 billion, driven by government initiatives including “Make in India” and the Production Linked Incentive scheme. India’s cost advantages in the form of competitive labor costs, a skilled workforce, and improving infrastructure make it an attractive manufacturing base for global suppliers.

Tenneco’s localization strategy supports this export push. The company has achieved approximately 88–90% localization of components, with targets to inch further up. This reduces currency exposure while improving margins and delivery times.

“India was always behind technology from the West. But right now, we’re equal to the West on technology,” Chandrasekharan added. “So, we can supply the same product that we’re selling to Indian customers — you can export that to Europe as well.”

The Missing Voice of Electric Tractors

Yukta Mudgal — Sun, 02 Nov 2025 13:37:12

India’s electric tractor startups are pushing to form their own industry association, or gain entry into the established one. But both paths are proving difficult. Without representation, they remain outside key policy discussions, financing frameworks, and subsidy programs that could shape their future.

Startups like Montra Electric, AutoNxt, and ShreeMarut have been developing electric tractors aimed at reducing emissions and fuel costs in agriculture. Yet, as they look to expand production, the absence of a collective industry voice has become a serious handicap.

The lack of association backing also makes financing difficult. Without an institutional framework or recognized body to interface with lenders, startups say banks are hesitant to finance electric tractor purchases.

"Not a single bank has said they will finance an e-tractor," said one founder on a condition of anonymity. "They finance every other electric vehicle, but not tractors yet."

Experts say that from the perspective of lenders and policymakers, the segment remains too small and untested. "Financing institutions rely on data and scale," said an industry expert. "A formal association could help generate that data and bridge trust between startups and regulators."

"Joining the Tractor Manufacturers’ Association (TMA) is essential," said one founder. "Without it, startups have no access to policy discussions or financing networks. But the entry conditions make it nearly impossible."

The TMA, which represents India’s major tractor manufacturers such as Escorts Kubota, Sonalika, and John Deere, requires companies to have at least ten years of operational history, a source revealed. Most electric tractor firms are only a few years old.

"A startup will die for sure, if not today, then tomorrow," said an industry source. "The TMA’s rule is that a company must be ten years old. The government’s rule is that there should be at least seven companies to form an association."

TMA did not respond to Autocar Professional’s queries at the time of publishing.

The government allows new industry associations to be formed if at least seven registered members apply together — a requirement that, in a young sector with only a handful of active players, is proving hard to meet.

"Are startups capable of organizing that many events and initiatives? Forming and promoting an association needs money too," said another founder.

Industry insiders say the lack of formal representation is one reason electric tractors remain outside subsidy programs. The PM-eDrive scheme, a revised version of FAME, currently supports electric two-wheelers, buses, and ambulances, but not tractors.

"Policy inclusion usually follows when there’s an organized body pushing for it," said a source familiar with the matter. "Right now, e-tractor startups don’t have that collective lobbying power."

For now, the electric tractor industry remains fragmented with a few innovators trying to establish themselves while struggling for a collective identity.

"The technology is ready, but the ecosystem isn’t," said a founder. "Without a seat at the table, we’re missing the very benefits that could help us grow."

How Tamil Nadu’s Auto Skills Revolution Is Building India’s EV-Ready Workforce

Yukta Mudgal — Wed, 15 Oct 2025 16:40:44

In small training centers across Tamil Nadu, the hum of robotic arms blends with the chatter of trainees learning to repair vehicles. For many of the students, these government and privately-run Industrial Training Institutes (ITIs) offer the first exposure to automation, before any of them step into a factory or workplace.

They are also critical pieces of a quiet skilling revolution taking shape in Tamil Nadu. The so-called “Detroit of Asia", as the state prepares its youth for an electric, connected, and software-defined mobility future. The initiative is designed to enable the automotive industry to make the transition to newer technologies and platforms.

The effort is spearheaded by the Tamil Nadu Apex Skill Development Centre for Automobile (TN AutoSkills) under the Tamil Nadu Skill Development Corporation (TNSDC). The Tamil Nadu program is unique in many respects compared to those in other parts of the country. Rather than treating skilling as a side initiative, the state is embedding it within its industrial ecosystem, aligning ITIs, polytechnics, and training centres with real factory technologies and employer needs.

Acting as a bridge between industry and education, TN AutoSkills has standardised over 150 courses aligned to automotive needs, from electric powertrains to AI diagnostics. Managing Director Kasiviswanathan Panchatsharam, also known as Kasi, has global experience at companies such as Tata Motors, Volvo, Hyundai, BMW, and Tesla.

"Our aim is not to create pockets of excellence but uniform capability across districts," he said. "Every plant, whether in Hosur, Sriperumbudur, or Tuticorin, should have access to equally skilled manpower." Tamil Nadu's technical infrastructure is growing in both scale and design. The state runs 132 government ITIs and 295 private ITIs, along with over 500 polytechnics.

Around 71 of the 132 government ITIs are now equipped with Industry 4.0 labs, where students gain hands-on experience in automation, 3D printing, robotics, and digital manufacturing. These facilities are training the next generation of shop-floor technicians for advanced technologies such as EVs, ADAS, and intelligent production systems.

One of the key aspects of Tamil Nadu's skilling effort is partnerships. For example, Delta Electronics has funded robotics programs in Hosur, while Hyundai is setting up a training academy on seven acres of government-allotted land, while Hyundai Motor Company is designing future skill courses and curriculum.

Changing Lives

For 32-year-old Jeganraj, the opportunity has been transformative. Once a networking engineer stuck in a repetitive job, he enrolled in a battery electric vehicle course under the state's Vetri Nichayam scheme, run by TN AutoSkills. Within months, he was hired by Ather Energy as a service technician.

"Now, I can see a path — first becoming a technician, then a supervisor, and maybe a manager one day," he said. For manufacturers facing rapid technological change, this kind of talent is gold. "Factories cannot digitise without digital-ready technicians," said a senior automotive expert.

"Even if we automate, someone must maintain and recalibrate the machines." The transformation is not only technical but also social. At Ola's electric scooter plant in Krishnagiri, the entire assembly line is run by women. Tamil Nadu leads India in women's participation in the industrial workforce, with the state employing 43% of India's female factory workers.

From Renault Group's Renault Nissan Technology & Business Centre India (RNTBCI), which drives their global engineering and R&D operations, to VinFast's newest manufacturing facility in Tuticorin, women are playing an increasingly vital role in Tamil Nadu's mobility ecosystem. For manufacturers grappling with global ESG targets and talent shortages, this inclusion is not just progressive but practical. "If we do not integrate women in tech-driven shop floors, we are missing half the potential workforce," Kasi noted.

Despite the infrastructure, the challenge lies in awareness and reach. Kasi recalls visiting colleges in Villupuram and Tirunelveli where students had never heard of NVIDIA or Tesla. "People are disciplined and talented, but awareness is very low," he said. Despites roughly 25,000 job vacancies across 38 districts, placement rates still hover around just 10%.

Part of the reason is that participation remains limited beyond flagship partnerships. As Kasi put it, "The factories are ready. The youth are ready. But industry has to step into the classroom." Another issue is related to culture. In a state famous for producing engineers, vocational training has long been viewed as a fallback. But that perception is shifting as factory floors become more digital and data-driven. "The awareness that skilled work equals opportunity—that is what we have to build," Kasi said.

The Path Ahead

TN AutoSkills plans to expand its overall scale of operations by 10-20% by March 2026 and target Rs 100 crore in revenue within five years through training, placements, and international collaborations. Delegations from Denmark, Germany, Japan, and the Middle East have already engaged with the state to recruit skilled technicians. Beyond Tamil Nadu, the hybrid model, where industry funds, the government facilitates, and youth execute, is emerging as a national blueprint.

But scaling it across India will require what Raman calls "collaboration beyond compliance." For OEMs and suppliers, skilling can no longer be treated as CSR; it must become a strategic investment. Finance Minister Nirmala Sitharaman recently highlighted the skill challenge facing the industry. Speaking at an event in September, she said the government is taking a comprehensive approach to skilling, focusing not only on traditional trades but also on emerging technologies like artificial intelligence.

Yet, she warned, a degree alone no longer guarantees readiness. "The degree on paper is there. But the individuals are not groomed adequately enough to be a part of the large multinationals. So I would want private sector participation together with the government, in readying youth to be fit for quick and direct employment."

According to C.V. Raman, former Chief Technology Officer and current executive committee member at Maruti Suzuki India, only 40% of engineering graduates have ever completed internships, and just 3% possess skills aligned with future technologies. "Sixty percent of the engineers are not employable in today's knowledge economy," he said at the Automotive Skills Development Council's Annual Conclave 2025. "Limited practical training, limited industry participation in skilling, and lack of world-class skilling infrastructure and incubation centres remain major obstacles."

This is especially important, given that the automotive industry contributes 7% to India's GDP, 50% to manufacturing output, and employs over 19 million people. Tamil Nadu's story mirrors India's broader manufacturing ambitions. The state has the infrastructure, industrial base, and intent. What it needs now is sustained industry co-ownership.

For automotive companies, the incentive is clear: reduced retraining costs, faster plant ramp-ups, higher localisation efficiency, and a workforce ready for EVs, ADAS, and mechatronics. As India eyes a Rs 30 trillion economy by 2047, Raman believes mobility will be one of the engines driving it. "We are the third-largest automotive market in the world," he said. "If India wants to be a Rs 30 trillion economy in 2047, mobility and energy will be the key drivers."

The Rise of the Scooter: How Convenience, Price and New Launches Are Luring Motorcycle Buyers Away

Glenn Noronha — Wed, 17 Sep 2025 13:21:08

After years of thoughtful money saving, Leve arrived at a TVS showroom in Andheri in Mumbai to buy a motorcycle for his brother. But, two hours later, the 23-year-old college student walked out of a Suzuki showroom after booking an Access instead.

“Looking at the Indian road conditions and practicality to carry stuff, I decided to go for a scooter. It has decent storage and is more practical,” he said.

Leve is one of the million consumers in India who ‘follow’ their brain rather than hearts when making a choice between motorcycles and scooters, driven by considerations of practicality.

Scooters, which were seen as the ‘second’ two wheeler of the household, somehow have made themselves a household necessity, with many Indian families choosing function over form.

The choices made by consumers like Leve are starting to reflect in the broad numbers.

According to SIAM (Society of Indian Automotive Manufacturers) data, in the first five months of FY25, scooters grew at a rate of 5.7 percent YoY compared to -5.9 percent for motorbikes. Current data shows scooters gaining market share.

In August 2025, scooters held 38.2 percent of the combined scooter-motorcycle market, up from 36.4 percent a year earlier. While motorcycles still command the larger share at 61.8 percent, the trend lines suggest this gap will continue narrowing.

The rate is set to grow even further with scooters penetrating the overall two wheeler sales at about 40 percent by 2030, according to a research firm.

What is driving this sudden shift, and how are millions of scooters making their way into the Indian family? Let’s know from customers and numbers alike.

Practical Considerations Drive Purchases

The reasons behind this shift become clear when talking to consumers who've made the switch. Aditya Rikame, who traded his Suzuki Gixxer for a TVS Jupiter after becoming a parent, explains his decision simply.

"Mostly what drove me towards buying a scooter instead of a bike was more of the practicality," he explains. "Once you have a kid, the practicality of the scooter becomes very important."

For Aditya, the choice was driven by daily realities that many urban families face. "If I want to just pick my kid up from school or drop him off, it's not feasible to drive a car always, right? So you need to have a two-wheeler," he says. The scooter offered something his sporty Gixxer couldn't: "ease of use, practicality. It had a lot of storage space... I can keep the helmet, I can keep my child's bag, school bag, and all of the stuff in the scooter."

This sentiment resonates beyond just parents. Football coach Pranit Vyas, speaking about his colleague Piyush's purchase decision, explains: "We are coaches and we need to at times carry equipment. We need to have some extra space with ourselves. On a bike, you cannot get that. The scooty was one big reason because of the space it provides."

The convenience factor extends to everyday activities. As Aditya puts it: "While shopping for groceries, going to convenience stores, it becomes very easy to take the luggage and everything as well."

Height and Accessibility Concerns

Another factor driving scooter adoption is accessibility, which affects many Indian families. Azhar Khan, a gym trainer from Mumbai, points out a reality that affects millions: "Indians are usually short, new school bikes are all high tail. Young girls wouldn't be able to sit comfortably, then what about the old, especially older women?"

Khan's family experience illustrates this perfectly: "My mom doesn't travel with us on bike but scooty. Even scooties are high for my maternal side, females – they can't sit on bikes most of the time."

This accessibility factor is expanding the user base, making two-wheelers more inclusive.

Family Usage Patterns

Scooters are increasingly becoming the preferred family vehicle. Engineering student Om Jagdale explains how family dynamics influence purchase decisions: "As a teenager, you can't go against your parents. If parents support you, they get a bike. But parents obviously want scooters."

The reasoning is deeply practical, as Om explains: "Families will think that Activa will be better or scooter will be better for household work. For bringing groceries, a father can ride it, a mother can ride it."

This multi-generational usability is changing purchase patterns. The market data reflects this shift - while scooter sales in August 2024 stood at 6.06 lakh units, they have grown to 6.83 lakh units by August 2025. Meanwhile, motorcycle sales increased from 10.61 lakh units to 11.07 lakh units over the same period, showing a more modest growth trajectory.

Om captures the current sentiment perfectly: "Nowadays, scooters are mandatory – there has to be a scooter in every home."

The shift is also affecting how young Indians approach their first vehicle purchase, with the scooter vs motorbike divide reflecting a broader, generational tension. "Being a teenager, we want to buy a bike with the right CC figure. We don’t worry so much about the mileage. But in some households, the parents prefer scooters, as they think they are safer," Om observes.

A second, but important, factor is price, he points out. "You can get a decent scooter for around Rs 1 lakh, but If you go for a bike, a one will cost you around 2 lakhs."

Kranthi Bathini, an equity strategist tracking the automotive sector, sees this trend as part of a larger market evolution. "The scooter can be a unisexual kind of setting. That is the advantage – the consumer shift is towards [scooters]. The trend is for the city drivers especially, the scooter is attracting the consumers."

Bathini also notes that this shift is more pronounced in rural areas, driven by economic factors: "We can see some kind of rising in the rural areas. We had a good monsoon, so these are the factors that will drive the two-wheeler industry."
Data shows the relentless rise in the market share of scooters in recent years. For example, they accounted for only 32% of total two wheeler sales in FY20, while they account for 38% in August 2025.

The spring months of 2025 demonstrated the resilience of scooter demand. March 2025 was particularly noteworthy, with scooters recording 5.86 lakh units sold and achieving an impressive 25.7% year-over-year growth, while motorcycles faced challenges with 8.72 lakh units and a decline of 22.7%. This stark contrast highlights the shifting consumer preference toward scooters.

The summer months of 2025 showed steady performance across both categories. May 2025 recorded 5.80 lakh scooter units with 7.1% growth, while motorcycles sold 8.90 lakh units with 4.7% growth. June saw some softening with scooters at 5.34 lakh units, but July bounced back strongly with 6.43 lakh units and 16.2% year-over-year growth.

The data is even more lopsided in the electric two-wheeler market, although here, the reasons also have to do with manufacturers’ design compulsions. As of FY 2024, scooters made up roughly about 95 percent of the overall electric two-wheelers sold. Moreover, electric scooters now contribute over 11 percent of total scooter sales.

Premium Scooter Development

One of the factors holding back the penetration of scooters has been their relatively low glamour quotient. Many youngsters do not prefer to buy scooters, which are associated with ‘dads’ and women. However, that too is changing slowly with the emergence of sporty scooters and premium (maxi) scooters

One of the first movers in this market was the Italian brand Aprilia, which came out with its SR 150 scooter in 2016.

However, this segment has been seeing more action in recent times. Piaggio with its Vespa line of scooters rolled out the Vespa 150 VXL and SXL, while Aprilia replaced its SR 150 with the SR 160. In 2023, Yamaha came out with the Aerox 155, its first Maxi scooter offering. While in 2025, mainstream scooter brands like Hero came out with the Xoom 160 and TVS came out with the NTORQ 150.

“If these scooters had come in my time, two years back, I would have bought them. You get the sporty look that you want, and the family thinks it's still a scooter,” points out Om.

Bathini too agrees that the emergence of premium models will help widen the appeal of scooters. "We are now seeing premium scooters coming into the market – this will widen the gap. These are new launches, we need to see the momentum pick up."

Current Market Position

Looking at the absolute numbers, the gap between motorcycle and scooter sales has been narrowing consistently. In August 2025, the difference was 4.23 lakh units (11.07 lakh motorcycles vs 6.83 lakh scooters), compared to a gap of 4.55 lakh units in August 2024.

Aditya Rikame, reflecting on broader market trends, believes this shift will continue: "In my age group, 30 to 40, people would be more inclined to a scooter because it's not only about kids, but commuting, parking and everything is very easy with the scooter."

Industry projections support this momentum. Research firm Kearney predicts scooter penetration could reach 40 percent by 2030, driven by "shifting urban preferences and rising female workforce."

For manufacturers, this shift represents both opportunity and challenge. Traditional motorcycle-focused companies are rapidly expanding their scooter portfolios, while scooter specialists are pushing into premium segments previously dominated by bikes.

As Pranit notes about his colleague's experience: "The Indian market is all about convenience. Convenience and efficiency. I don't think he regrets that decision."

The scooter trend reflects changing lifestyles, family needs, and urban mobility requirements. From young buyers navigating family expectations to parents prioritizing practicality, the shift toward scooters appears to be driven by concrete benefits rather than just changing preferences.

Based on current growth rates and the consistent month-over-month performance data, this trend is likely to continue as manufacturers respond to consumer demand for practical, accessible transportation solutions.

Matter’s e-Motorcycle Push in a Scooter Dominated Market

Darshan Nakhwa — Tue, 16 Sep 2025 19:13:41

When electric motorcycle startup Matter Motor Works Pvt Ltd, was founded by Mohal Lalbhai in 2019, the electric two-wheeler market in India was still at a nascent stage. Barely 30,000 units were being sold annually, and scooters were seen as the natural spearhead of electrification.

Startups such as Ather Energy and Okinawa had entered early, Hero Electric was the established volume player, and Ola Electric was preparing to enter the scooter space. Motorcycles, the dominant category of Indian two-wheelers, were almost entirely missing from the electrification conversation. Lalbhai saw that omission as both a challenge and an opportunity.

“The idea was never about chasing a hot segment,” he says. “Scooters already had global technology solutions, from China to Europe. But motorcycles, which are 60-70% of India’s two-wheeler market, had no one solving for them. Motorcycles are tougher to engineer than scooters, and this is where India’s heart lies. Indians want SUVs on two wheels.”

Six years on, the Ahmedabad-based startup is attempting to close that gap. Its debut product, the Aera, is India’s first geared electric motorcycle, designed to sit squarely in the commuter-premium 150-200cc segment. The Aera is only the beginning. The company is now preparing for a much larger push, expanding distribution, building a family of motorcycles, introducing swappable battery solutions, preparing for exports, and laying the foundations for profitability in one of the toughest automotive markets in the world.

Expanding Distribution

This year, Matter’s focus is squarely on distribution growth. The company, which currently sells only in Ahmedabad, Mumbai, Delhi, Bengaluru, and Pune, plans to scale up to 50 sales-and-service touchpoints by the end of the year, concentrated in Gujarat, Maharashtra, Karnataka, Kerala and Tamil Nadu. In 2026, the company aims to expand its footprint to 150 outlets, covering north and northeast India.

“What’s interesting is that demand (for electric twowheelers) is split almost evenly between urban and rural India,” Lalbhai explains. “So we’re planning for balance right from the beginning.” With that network in place, Matter expects to reach annual sales of 45,000-50,000 units by next year, a sharp step up from its pilot volumes today.

In FY25, India’s electric twowheeler market crossed the onemillion- unit milestone for the first time, with 1.15 million vehicles sold, up 21% year-on-year. Legacy manufacturers like TVS Motor and Bajaj Auto, along with new-age players such as Ola Electric and Ather Energy, intensified the battle for market share through a spate of model launches across segments. Yet, motorcycles accounted for less than five percent of total sales. Matter is betting that this imbalance won’t last long.

Building Product Portfolio

The Aera gave Matter a distinctive entry point, but the company is working on a top-down portfolio strategy. By Diwali 2026, it plans to launch a 150cc-equivalent motorcycle, followed a year later by a 125cc version. Both will be built on the company’s M1 platform, which also underpins the Aera. In parallel, Matter is investing in the M2 platform, designed for battery-swapping. “For the 125cc category, swappability is non-negotiable,” Lalbhai says. “Within five years, we will offer both fixed and swappable options in 125cc and 150cc-equivalent motorcycles.”

This approach also paves the way for a Battery-as-a-Service model, easing the burden of upfront costs by shifting batteries into a subscription plan. Coupled with Matter’s lifetime battery warranty, the goal is to reassure consumers about long-term reliability–a concern that continues to hold back many EV buyers.

Export Horizons

While India is the immediate focus, Matter’s ambition is global. This year the company will be pushing the sales of the Aera model in the domestic market, and is likely to start looking at export markets from next year. Lalbhai noted that the company will explore countries in Southeast Asia, Eastern and Southern Europe, East Africa and Latin America. Different geographies, Lalbhai notes, demand different displacements.

“Europe is better suited for a 200cc equivalent product like the Aera 5000+, while Africa and Southeast Asia will likely adopt the 125cc and 150cc bikes. We will go segment by segment, region by region.” Indonesia, among the world’s largest motorcycle markets, is a natural target but also a highly competitive one. For Matter, the export plan is less about rushing in and more about matching the right product to the right market.

Why e-Motorcycles Lag e-Scooters

India’s electric scooter market has already crossed the chasm. Ola, Bajaj, TVS and Ather are not just selling in the thousands but in many cities are outselling conventional scooters. Motorcycles, by contrast, remain a rarity on the EV map. Lalbhai argues that this is less about demand and more about product availability and consumer awareness.

“We are where scooters were four years ago. Customers don’t even know electric motorcycles exist. Once they ride one, the convenience becomes real, you charge at home from a 5-amp socket. You don’t have to visit a petrol pump. These small things change mindsets.” Most motorcycle use in India, he notes, is intra-city. Few riders cross 70 kilometers a day, making range anxiety less of a concern than commonly perceived.

“Motorcycles are just as well-suited for electrification as scooters, if not more,” Lalbhai insists. Industry experts, however, caution that the road ahead is steep for the electric motorcycle segment. By FY30, electric scooters could make up as much as 60% of scooter sales in India, while electric motorcycles may still account for only around 10% of the motorcycle market.

"It’s tough to build an e-motorcycle that combines the performance riders expect, while also keeping the price below Rs 1 lakh. Even established OEMs are struggling to achieve that balance,” an analyst said.

Steering Clear of Premium Segment

Matter is strategically focusing on its product development with no immediate plans to venture into the electric scooter or premium motorcycle segments. “That (premium) segment does 10 lakh units a year (including ICE and EV), of which Royal Enfield alone sells 8 lakh. The balance is split between the world’s strongest brands– Harley-Davidson, Triumph, Honda, Yamaha, Kawasaki and others,” Lalbhai says.

“With sales of 10 electric bikes a month, an OEM might feel good that they have cracked it because the percentage will be very high. But 10 bikes does not make for a sustainable business,” he adds. Instead, Matter’s focus is firmly on commuter motorcycles, the true mass of the Indian market. It currently competes with electric motorcycle makers including Revolt Motors, Oben Electric and Ola Electric with its less than 200cc equivalent motorcycle. Apart from Matter, Ola, Revolt and Ultraviolette, Ather is also gearing up to launch electric motorcycles.

The Bengaluru-based startup is working on a platform named Zenith to support new electric motorcycles targeting the 125-300 cc segment users. Among traditional players, Royal Enfield, with its Flying Flea brand, and Hero MotorCorp, which has a partnership with US-based electric motorcycle maker Zero, are set to enter the electric motorcycle space in 2026.

Navigating Rare Earth Turbulence

Global EV supply chains are notoriously vulnerable, and Matter has already had to adjust. China’s recent curbs on heavy rare earth magnet exports, used in motors, unsettled many manufacturers. Lalbhai insists Matter had prepared for this. “The problem was real. More importantly, we’re working with a North American partner on an alternative material, something between ferrite and heavy rare earth. Performance will remain the same, costs will be at par or lower, and we won’t be completely dependent on China.”

Because Matter designs its motors and software entirely in-house, it has the flexibility to recalibrate quickly. “70% of our project effort went into fine-tuning software characteristics, not just making the motor spin,” Lalbhai says. “That gives us an edge.”

The Profitability Game

Profitability is the elephant in the EV room. Many electric two-wheeler startups remain in the red despite strong growth in sales, while few legacy players are closer to turning profitable. Matter believes its slower, vertically integrated approach is the antidote. By designing all core technologies in-house, it avoids the royalties and vendor margins that eat into competitor economics.

“It’s taken us six years, but we don’t bleed through high component costs. We control everything,” Lalbhai says. Still, scale is non-negotiable. “Selling 5,000-15,000 units a month is not automotive scale. The real scale begins at 50,000 units. We expect EBITDA breakeven when we hit 20,000-30,000 monthly units,” he says.

Ganesha’s Blessings: Student’s Dashboard Innovation Merges Faith with Emergency Tech

Shristi Ohri — Tue, 16 Sep 2025 12:54:45

What began as a curious student's YouTube discovery has evolved into a comprehensive car safety device that combines emergency tools with the familiar design of a dashboard bobblehead, demonstrating how university incubation programs are fostering practical innovation among students.

Shivam Agarwal, a product design student at Anant National University's School of Design, developed "Raksh" — a dashboard accessory that integrates a glass breaker, seatbelt cutter, 130-decibel siren, SOS button, and detachable magnetic backpack with flashlight and emergency lighting into a single device designed to remain visible during panic situations.

The project's origins trace back to 2019 when Agarwal, preparing for college entrance exams, discovered emergency tools like glass breakers and seatbelt cutters on YouTube. "I found them to be cool. It was new to me, because I was not aware of them. Even my parents were not aware of them," Agarwal recalled during a recent interview.

Further digging revealed an alarming gap: While such tools exist, they're typically stored in glove compartments where panicked drivers and passengers often overlook them during emergencies.

University Ecosystem Transforms Student Ideas

The story of Raksh also illustrates how a structured incubation program can transform student innovation into tangible outcomes. For example, after Agarwal entered Anant University, his initial bobblehead character design underwent significant refinement through the institution's design-focused curriculum and mentorship system.

Agarwal says he did not have much idea of what was lacking before he got into the university. "When I got into Anant, I got to know about the design because I joined as a product designer student," Agarwal said, describing how his second-semester prototype garnered positive feedback from faculty juries who recognized its commercial potential.

The project gained momentum through the incubation center's annual idea contest, where Agarwal secured a grant and a mentor, who provided industry insights that shaped the final product. The mentorship proved crucial in refining features and removing impractical elements.

Addressing Real-World Emergency Scenarios

The device addresses time-critical emergency situations where visibility and accessibility are paramount. Agarwal's research into vehicle submersion scenarios revealed that occupants have only three to four minutes to escape from a drowning car before complete submersion, making immediately visible tools essential.

"In such situations, people panic. In drowning also, it will take five to seven minutes to completely submerge the car and the person inside has three to four minutes to escape," he explained.

The product's design philosophy centers on dashboard placement to ensure tools remain visible during emergencies. The magnetic detachable backpack can be removed and attached to the car body for hands-free lighting during roadside repairs or emergency situations.

Market Positioning and Future Plans

Agarwal estimates mass production costs at ₹600-700 per unit, positioning Raksh as an affordable safety accessory for all vehicle segments. The device targets a market gap where comprehensive emergency features are typically available only in high-end vehicle models.

The product has secured design registration with patent applications in progress. Rather than pursuing direct manufacturing, Agarwal is exploring partnerships with automobile dealerships to offer Raksh as an add-on accessory or through IP licensing to established automotive companies.

Cultural adaptation remains part of the strategy, with plans to customize the bobblehead design into religious figures popular on Indian dashboards. "People usually use religious things on their dashboard. We can build this into an idol of Lord Ganesha or any religious thing," Agarwal noted.

Supporting Student Entrepreneurship

Raksh represents part of a larger shift in India's entrepreneurship landscape, according to university administrators.

Dhara Thakore, Head of the university’s Aarambh Incubation Center and assistant professor, emphasized the importance of providing a support system to innovative ideas, right from the student stage:

"We have different labs, tinkering labs or future shift labs, and a lot of support in terms of hardware, software. And apart from that, we tried to give him the understanding of how you look into finances, how to look into go-to-market."

Thakore noted a significant change from traditional patterns where students sought employment before considering entrepreneurship.

"There was a time when people were all looking at doing a job for some time and then came the switch to entrepreneurship," she observed. "Quite a few students are now opting for entrepreneurship because they are getting that kind of support from the university…There is a shift in the student mindset as well."

The Aarambh Incubation Center has supported six student entrepreneurs who successfully launched companies with market-ready products in the past year, plus eight alumni working across sectors including agritech, heat mitigation, and mobility solutions, all focused on design and sustainability principles.

The project demonstrates how university incubation programs can bridge the gap between student innovation and market viability, providing technical resources and mentorship.

From Trading Floors to Social Media: Maruti Suzuki Victoris Creates a Flutter

Anurag Chaturvedi — Thu, 04 Sep 2025 15:25:22

When Maruti Suzuki unveiled the Victoris, it sparked conversations from boardrooms to Twitter threads. For years, the company had watched rivals like Hyundai's Creta and Kia's Seltos capture hearts and wallets in India's SUV market while its own Grand Vitara struggled to gain traction. Now, with the Victoris, both industry experts and car enthusiasts are asking the same question: has Maruti finally built something that can challenge the segment leaders?

The reactions reveal a clear divide. While analysts focus on market positioning, consumers are scrutinizing every design detail and feature. "Maruti is coming full on against very popular models like the Creta and the Nexon," observes a senior analyst.

Meanwhile, on social media, users are focused on the features, looks and pricing. "Honestly it looks better than creta from outside, but Interiors are same mass market," notes one Twitter user (@varun0884), capturing a sentiment that industry experts share but express differently.

First Impressions: Looks

Early reactions from potential buyers and experts reveal a fascinating divide. Some are genuinely excited about what they're seeing.

Hitesh Thakurani of HDFC Securities pointed out that newer models are likely to get better traction in the market, simply because leading models such as Creta and Nexon have been around for some time.

While not a radical departure from the aesthetics that dominate the segment, the Victoris does try to break some new ground, particularly for Maruti Suzuki. It has a futuristic and connected look, thanks to a slim, pixel-type LED DRLs that sit above a sleek, horizontal grille with chrome accents. The side profile features squared-off wheel arches with black cladding and 18-inch dual-tone alloy wheels, with connected LED taillamps that further enhance its contemporary appeal.

As far as social media reactions are concerned, some really seemed to like the new look, while others found it boring. "With this car Maruti has solved all its flaws. Crazy car, will be worth checking this. [For the first time] Maruti [is trying] to truly attract customers with style and not just mileage," noted Reddit user Radiant-Pollution392, adding that if priced right, "sales of Nexon as well as Creta will be challenged by" the new model.

The design, which reminded a popular X user of VolksWagen models, seems to be generating largely positive responses. "Maruti taking design inspiration from VW is a step in the right direction,” said X user Sunderdeep (@volklub). “No other brand enjoys a cult following like VW…With 40 times more reach than VW and bulletproof support, Maruti has the edge," he added.

There were also others who were more effusive in their praise, with words such as: "Maruti has improved leaps and bounds in their design statement.”

However, not everyone is impressed. "Looks boring tbh. All the new cars nowadays look similar with uninspired dressing," dismissed vegan_realist on Reddit. X user @varun0884, was more charitable: "Honestly it looks better than Creta from outside.” However, he was disappointed by the glossy black interiors, noting that they had the “same mass market” feel. “They need to redo for the premium feel."

But this was not a view uniformly shared. "The interiors are insanely good unlike any Maruti," said Reddit user @BananaAvailable, in somewhat of a backhanded compliment.

The Price Question Everyone's Asking

While official pricing hasn't been announced (bookings are open at ₹11,000), the car will be sold through Maruti's Arena dealerships rather than premium NEXA outlets – a hint that pricing will be competitive.

This pricing strategy reflects what consumers have been demanding. Kranthi Bathini from WealthMills Securities suggests optimal pricing would be "around 15-20 lakh," hitting the sweet spot for mainstream SUV buyers. The challenge, as analysts note, is that "waiting for GST rates to be announced only then can opinions can be done on pricing."

A senior analyst mentions that as the Victoris is above four-metre length and given the new GST rates, pricing it very important to make model successful

The company is expected to announce the pricing any time now, given that the government has clarified the new GST rates.

Engineering Innovations

The Victoris attempts to solve problems that have frustrated Indian car buyers for years. The underbody CNG fuel tank is perhaps the most practical innovation, freeing up boot space that conventional CNG installations typically compromise. "The underbody CNG fuel tank could benefit Victoris as customers always appreciate extra boot space," notes Hitesh Thakurani from HDFC Securities. This resonates with real-world users who have long complained about sacrificing luggage capacity for fuel economy.

A Mumbai-based analyst noted that Tata was successful in freeing up boot space, but Maruti was not. “This may work in its favour," he added.

Secondly, the strong hybrid system of the Victoris positions the vehicle between conventional engines and full electric vehicles, addressing the reality that most Indian buyers aren't ready for full electric vehicles yet want better fuel efficiency.

Thakurani of HDFC Sec points that it was smart of Maruti Suzuki to target the gap between EVs and ICE. “If localization helps in narrowing that gap a bit, you can see good traction there," he added. Online consumer sentiment too increasingly focuses on hybrid technology as a practical middle ground.

Safety Firsts

The Victoris achieves a five-star Bharat NCAP rating, addressing what has become a major talking point among car buyers. "First time Bharat NCAP five stars is a good thing since Maruti was lacking in this," a senior analyst acknowledges . This isn't just industry jargon; safety ratings have become conversation starters at dinner tables and WhatsApp groups where families discuss car purchases.

The safety achievement matters because consumers have become more aware. Online users too noted the shift, with consumers now routinely checking safety ratings before making decisions. The five-star rating puts Maruti on equal footing with competitors that have used safety as a selling point against the brand.

A Test of Transformation

The Victoris represents more than a new model; it's a test of whether Maruti can evolve its brand perception. Whether that initial traction translates into sustained success will depend on whether Maruti has truly understood what consumers want, or merely what analysts think they should want. One X user, MadhusudanSahuu, put it plainly: "Honestly, Victoris feels like what the Grand Vitara should've been in the first place. Maruti finally seems to be listening with the features and safety bit."

IIM-B’lore’s NSRCEL gives fillip to mobility startups

Mayank Dhingra — Tue, 02 Sep 2025 09:44:12

The mobility ecosystem is undergoing a fundamental shift, with electrification, connectivity, automation, and the push for sustainable transportation driving the sector towards a major overhaul, it is opening opportunities for new entrants to offer breakthrough solutions. However, for the early-stage entrepreneurs, navigating this fast-changing landscape is often a daunting journey, particularly when policy frameworks continue to evolve and technology remains fluid, often making raising capital arise as a big challenge.

It is precisely this complex environment that NSRCEL - the startup incubation arm of IIM Bangalore - seeks to simplify. NSRCEL or the NS Raghavan Centre for Entrepreneurial Learning positions itself as an open business incubator that places as much emphasis on the entrepreneurial journey as it does on technology.

While technical validation and product prototyping are crucial, the incubator’s core strength lies in helping founders build viable business models and connect with partners who can accelerate their progress. According to Anand Sri Ganesh, CEO, NSRCEL, “For the innovator, this is a double-dip problem, wherein one needs to find a path to product-market fit while also operating in a space which is not yet fully defined. For us, this is a perfect opportunity for incubation.”

The mobility programme sits within NSRCEL’s larger focus on climate and sustainability, spanning energy, environment, and infrastructure, and within this umbrella, sustainable mobility has emerged as its natural area of concentration. Startups incubated under this program cut across diverse domains, right from EV drivetrains and battery management systems to advanced driver assistance systems or ADAS, last-mile connectivity solutions, digital twins, and even passenger comfort innovations.

"We bring partners that enrich the knowledge as well as understanding of the ecosystem for the founder so that they are able to get to their point of product-market fit faster and with less friction," Anand Sri Ganesh, CEO, NSRCEL.

“Mobility is somewhat underserved as an entrepreneurial ecosystem compared to other spaces. That makes it a fertile ground for incubation because we can now create that mental model for the venture by bringing in partners that enrich the knowledge as well as understanding of the ecosystem for the founder so that they are able to get to their point of product-market fit faster and with less friction,” added Ganesh in an exclusive interaction with Autocar Professional.

The incubation centre specialises in augmenting a startup’s zero-to-four-year or its pre-Series-A journey and has umpteen examples of working with diverse startups across the country. While CY25 alone has seen NSRCEL incubate startups incorporated in 82 towns across India, most of them fall within the common thread of either being tech-enabled or tech-embedded ventures.

“Our best work gets done in the early stages of an enterprise, and about 90% of our ventures either have a patent, or an IP, or a fundamental innovation that constructs the venture, or they are using technology to translate a specific business model,” he explained.

Opening Doors

Over the past few years, under its Incubation Program for Mobility Startups, NSRCEL has worked with a wide pool of emerging companies that showcase both technological depth and practical application. For instance, Chennai-based Rizel Automotive is one of its fastest-growing ventures, developing motors for electric vehicles across two-, three-, and four-wheeler categories. In the ADAS space, Rosh AI has built its scalable autonomous driving solutions, as well as fleet navigation and path optimisation tools for controlled environments like ports and airports, while Pune-based Starkenn focuses on driver alertness and safety monitoring in long-haul trucking.

While Bengaluru-based ValetEZ has digitised parking management in over 15 Indian cities by handling over 90 million parking events using its IoT platform, HyCube Works specialises in industrial 3D printing and has supplied advanced printers to the Indian Army and Air Force, enabling rapid prototyping and localised manufacturing for automotive and aerospace applications.

On the last-mile delivery side, ventures like Epick Bikes are enabling last-mile mobility through EV-based solutions. NSRCEL also incubates unconventional but highly relevant startups such as Woloo, which certifies clean, IoT-enabled public restrooms on highways to improve the travel experience, especially for women, and True Assist Technology, which has developed assistive mobility solutions for differently-abled passengers, with Maruti Suzuki and Hyundai as key OEMs to evaluate the integration of the technology into their respective products.

NSRCEL’s collaboration with leading carmaker Maruti Suzuki India (MSIL) through the latter’s Maruti Suzuki Innovation programme has also seen the identification and development of various mobility startups across multiple categories. Its association with automakers not only brings credibility but also provides startups with an immediate platform to test, refine, and scale their innovations. In turn, OEMs gain access to agile, out-of-the-box technologies that may not emerge from their internal R&D processes.

As India’s largest carmaker, MSIL says it plays a key role in incubating startups through its Maruti Suzuki Innovation programme, wherein it partners premiere institutions such as IIM-Bangalore NSRCEL, T-Hub, and Nasscom, among others. Shortlisted startups receive guidance, mentorship and integration and exposure to Maruti Suzuki’s innovation ecosystem, while also getting opportunities for paid proof-of-concept and access to one of the largest automotive testbeds.

The NSRCEL facility housed inside the IIM-Bangalore campus aims to facilitate the early-stage or zero-to-four-year journey of technology-oriented startups across mobility, biotechnology and other promising domains.

MSIL has established the Maruti Suzuki Innovation Fund to invest in promising startups. For instance, the carmaker has invested around Rs 2 crore in Sociograph Solutions to use its visual AI platform, Dave.AI, to enhance its customers' digital sales experience. In addition, India’s leading passenger vehicle manufacturer has made an investment of around Rs 1.99 crore in Amlgo Labs, a technology-led startup operating in the area of data analytics, cloud engineering, Machine Learning (ML) and Artificial Intelligence (AI), to assist companies in data-driven decision making.

According to the carmaker, its innovation programmes are designed to support startups and co-create solutions that can be integrated into Maruti Suzuki’s operations. As per an MSIL spokesperson, “In the journey of six years, over 5,220 startups have been screened, around 150 startups were engaged and 28 of these startups have been onboarded as partners delivering value to our business.”

“Industry-academia collaboration is a cornerstone of sustainable innovation. Our partnerships with institutions like IIM-Bangalore (NSRCEL), enable us to tap into cutting-edge research, nurture early-stage ideas, and build a robust talent pipeline. These collaborations help bridge the gap between theoretical innovation and practical application and foster a culture of experimentation and entrepreneurship,” added the company’s spokesperson.

Ensuring Promising Future

The sheer variety of startups incubated through its collaborative efforts with industry majors like MSIL highlights NSRCEL’s philosophy of looking at mobility holistically - not just in terms of vehicles and infrastructure, but also consumer experience, accessibility, and sustainability. With respect to the future of such startups, NSRCEL categorises the trajectories into three buckets.

Firstly, some deep-tech ventures in ADAS, materials science, or propulsion may evolve towards technology licensing or IP transfer, given their cross-domain applicability across mobility, drones, and even aviation. Secondly, areas like EV charging infrastructure and battery management are ripe for industry consolidation as protocols converge and standards emerge. As per Ganesh, in these cases, the startups may merge with larger players or become part of platform-aligned ecosystems.

And lastly, he mentioned that several ventures will scale independently into standalone companies with global ambitions. Ganesh explained that with mobility challenges being universal, Indian startups are increasingly creating ‘India-for-the-world’ innovations such as digital twins, green supply chain solutions, and sustainable materials that have relevance in markets from Europe to Southeast Asia.

Furthermore, as access to capital remains one of the biggest hurdles for early-stage startups, NSRCEL adopts a balanced approach, helping founders secure both dilutive (VC equity) and non-dilutive capital - grants, corporate challenges, and family foundations. While 70% of early funding typically comes from traditional VCs, Ganesh highlighted the importance of the remaining 30%. According to the NSRCEL CEO, deep-tech ventures in fields like biochemistry or alternative materials often face a long runway before market traction, making patient, non-dilutive capital critical.

Corporate innovation arms are also playing a growing role, offering prototyping capital to test solutions within their operations. As Ganesh puts it, “A corporation may cut a US$ 50,000 cheque if a startup can prove its use case on their assembly line or within their fleet. If it works, then scaling becomes a natural next step,” he explained.

With a booming economy and ambitious targets toward decarbonisation, road safety and electrification, nurturing the right innovation ecosystem will be critical to India’s long-term roadmap. As a result, NSRCEL, with its open incubation model, national reach, and focus on business-building alongside technology, is positioning itself as a critical bridge between entrepreneurial energy and industry adoption.

“Our belief is that mobility startups from India are not just solving local problems but are increasingly shaping global solutions. The India-for-the-world innovation in mobility is a very strong force, and NSRCEL is proud to play a role in nurturing it,” Ganesh signed off on an optimistic note.

Also read: Maruti Suzuki Selects Nine Startups for Ninth Accelerator Program Cohort

IIM-B’lore’s NSRCEL gives fillip to mobility startups

Mayank Dhingra — Tue, 02 Sep 2025 09:44:12

Opening Doors

Ensuring Promising Future

Also read: Maruti Suzuki Selects Nine Startups for Ninth Accelerator Program Cohort

AC Truck Cabins: Comfort or Profit?

Shahkar Abidi — Sat, 30 Aug 2025 11:15:22

The heat is quite literally on for India’s commercial vehicle sector. Starting June 8, 2025, every new medium and heavy truck sold in India must come equipped with an air-conditioned cabin. For an industry that moves the vast majority of the country’s goods, this regulatory shakeup has profound technological, economic, and human implications.

Yet, amidst early grumbles about rising costs, a quiet efficiency enhancement is underway, aiming to reconcile comfort with cost — and setting a blueprint for emerging markets worldwide.

Fuel Efficiency: The Old Achilles' Heel

For decades, many Indian truckers have avoided factoryfitted air conditioning, primarily due to concerns about fuel consumption. Traditionally, running a truck’s AC could consume up to 5% of its total fuel use, which is a not-insignificant hit, especially for light and medium trucks where the air conditioner’s burden is heavy compared to engine output.

The upfront impact is not trivial. In addition to loss in efficiency, estimates suggest mandatory AC cabins have pushed up the cost of heavy trucks by 0.5-1%, while lighter trucks are shouldering a steeper 1.2-2% hike, reflecting the greater engineering tweaks smaller cabs require.

For fleet operators, many of whom work on wafer-thin margins, it translates to significant increase in operating costs. Some players, such as VECV, claim to have brought the fuel efficiency of ACequipped trucks “very close” to non- AC variants by embracing electronics and synchronizing the AC’s operation with the engine’s electronic control unit via ‘engine maps’.

These ‘maps’ act as sophisticated instructions, telling the engine exactly how to respond when the AC is engaged, preserving precious fuel. This was enabled by the sector’s progression to Bharat Stage 6 (BS6) emissions standards, which brought a wave of electronics. Indian truck manufacturers like Tata Motors, Ashok Leyland and Mahindra have started rolling out vehicles based on these technologies, enabling drivers to tailor performance to both cargo and AC load.

For instance, Tata’s trucks now feature idle auto-shut, reducing wasteful engine-on time when idle. Furthermore, the OEMs are using enhanced insulation in newer cabins, using advanced materials, which means less heat seeps in – reducing the AC system’s workload and cutting down energy draw.

Compressor: The Heart of the Matter

One of the innovations used by VECV is the use of scroll compressors. Unlike the old reciprocating (piston) types that draw constant power, scroll compressors are rotary devices that adjust their output to demand. This translates to lower mechanical friction, up to 92% efficiency (compared to 70-80% for reciprocating types), quieter running, and measurable improvement in fuel economy.

Currently, this advanced system is available across VECV’s light and intermediate trucks, with plans afoot to extend it to heavy-duty vehicles. Such optimization is not just an Indian phenomenon. European truck makers, too, are electrifying auxiliaries and exploring holistic vehicle energy management to keep air conditioning from draining fuel tanks.

Yet efficiency is only part of the story. For the first time, Indian trucking is set to match global standards for driver comfort. “Today, a driver is the one person who is defining your logistics efficiency,” says Sachin Agrawal, Executive VP & Head of Product Development at VECV. With better AC, VECV’s data shows long-haul mileage is up, with trucks averaging over 20,000 km a month, a remarkable jump from the industry’s historical 12,000– 13,000 km.

Trucking Beyond Borders

While Western markets have mandated air-conditioned truck cabs for years, India represents perhaps the world’s toughest proving ground: extreme climates, punishing road conditions, and cost-conscious operators. The domestic sector’s leap forward, driven by mandates and enabled by integrated electronic engineering, is an important signal for fast-growing markets in Africa, Southeast Asia, and beyond.

Eicher Unveils Pro Plus LMD Series

VECV, A JOINT venture between Sweden’s Volvo Group and India’s Eicher Motors, is sharpening its competitive edge in the country’s bustling light and medium-duty (LMD) truck market.

Eicher Trucks and Buses, VECV’s key business unit, unveiled its next-generation Eicher Pro Plus Series in July, targeting freight carriers in the ever-intensifying world of e-commerce and rapid logistics. Last year, VECV cemented its dominance with a robust 36% market share in the 5-18-ton category, moving approximately 40,000 vehicles out of an industry total of about 118,000 units.

“In the LMD category, we already have a strong presence,” said Vishal Mathur, EVP – Light & Medium Duty Trucks, VECV. “Last year, our market share in the category of 5 to 18 tons was 36%... With the Pro Plus Series, we have further added benefits or features to our customers which will help them improve their profitability.”

India’s LMD truck segment has been on a growth tear, closely tracking the nation’s logistics renaissance. The segment witnessed a marginal 8% growth during Q1FY26. The upsurge in e-commerce and the burgeoning quick commerce sector have driven demand for nimble, reliable city logistics vehicles—capable of maneuvering both: urban bylanes and improved national highways.

Besides VECV, industry stalwarts like Tata Motors, Ashok Leyland, and Mahindra & Mahindra are jostling for pole position in the battle for market share. “There is a strong demand from market load and logistics operators,” Mathur noted.

“The e-commerce segment has seen significant picking up, showing good demand. This also extends to quick commerce. These segments specifically require smaller capacity trucks (e.g., 5-7-9 tons) for city distribution and lastmile connectivity.”

Meanwhile, India’s expanding expressways and enhanced highways are tilting the scales toward higher payload vehicles in the 12 to 18-ton range, further opening avenues for customer profitability and efficiency. The sector is also producing a steady replacement cycle, as older vehicles reach the end of the line—a trend VECV is keen to capitalise on.

“Also, there is a significant replacement demand as older trucks reach the end of their lifecycle,” Mathur added. “The new range is a result of deep customer engagement and future-focused engineering. By combining industry leading vehicle productivity with features that improve driver productivity, we are offering customers a truly differentiated platform that supports both intra-city and longer-haul applications.”

As India’s logistics landscape grows quicker, and more complex, the LMD segment is likely to have many more launches and refreshments. With industry rivals and new demand cycles emerging, India’s trucking chessboard is primed for another turn.

Mahindra Drives into the Future with NU_IQ Platform and Vision 2027

Ketan Thakkar — Thu, 28 Aug 2025 12:33:23

Mahindra & Mahindra (M&M) has set the course for its next decade with the unveiling of Vision 2027 and the NU_IQ SUV platform on August 15. The automaker is betting on a flexible, multi-energy architecture that will not only reinforce its stronghold in India but also serve as the springboard for a calibrated global expansion.

At the heart of the plan lies a simple but powerful conviction: the future of the global passenger vehicle industry will be shaped by flexible architectures, global-ready engineering, and the ability to pivot across multiple energy options. For Mahindra, a company that has reinvented itself in the SUV segment over the past five years, Vision 2027 is both a declaration of intent and a hedge against uncertainty.

The strategy leans on three pillars: consolidating domestic leadership in SUVs, building a calibrated but determined global presence, and future-proofing the business with flexible architectures and enhanced capacity.

“Just five years ago, we embarked on a journey with bold ambitions,” said Anish Shah, Managing Director & CEO of Mahindra Group. “Our ambition was to lead, not to follow, to disrupt, not be disrupted, to take Indian ingenuity and resilience to the rest of the world and to lead not just in India but across the world.”

From the rugged Thar to the sophisticated XUV700, Mahindra has built an SUV portfolio that resonates deeply with Indian buyers. The company’s revenue market share in SUVs has more than doubled–from 13.2% in FY21 to 27.3% in the latest quarter. Vision 2027 is an effort to build on this momentum while broadening the company’s footprint globally. “It will become the backbone of a next generation of world-leading SUVs, engineered right here in India for the world,” said Shah.

NU_IQ Platform

The most striking element of Vision 2027 is NU_IQ, a modular, multi-energy SUV architecture engineered at Mahindra Research Valley in Chennai, with design input from the Mahindra India Design Studio (Mumbai) and Mahindra Advanced Design Europe (UK).

From 2027 onwards, NU_IQ will underpin multiple SUVs across sizes, price points, and energy options. It has been designed to support petrol, diesel, and fully electric powertrains, with flexibility to integrate hybrids if required. It can be configured for front-wheel drive, all-wheel drive, left-hand drive, and right-hand drive markets, making it inherently global.

On Independence Day, Mahindra revealed four concept SUVs on this platform–Vision.S, Vision.T, Vision.SXT, and Vision.X–each tailored to a distinct buyer segment. From compact, urban-centric SUVs to rugged lifestyle vehicles, the showcase demonstrated how NU_IQ could anchor a diverse global lineup.

R Velusamy, President, Automotive Business (Designate) and MD of Mahindra Electric Automobile Ltd., described NU_IQ as “a strategic blueprint for the future of Mahindra SUVs globally.”

Technically, NU_IQ breaks new ground for Mahindra. It offers:

Commanding comfort: 1563 mm seating height and class-leading rear legroom (937 mm).

Space efficiency: 15% more luggage room than global benchmarks.
Driving dynamics: a five-link independent rear suspension–a segment-first–combined with proprietary DominC damping for agility and ride comfort.
Safety: 101 patents, asymmetrically placed ribs in floor for crash resistance, and readiness for 5-star ratings across Global NCAP, Euro NCAP, and ASEAN NCAP.
Digital readiness: cloud-compatible hardware, over-the-air update capability, and SDV (software-defined vehicle) architecture.

Pratap Bose, Chief Design and Creative Officer, positioned NU_IQ within Mahindra’s “Heartcore” design philosophy, which merges contrasting design cues under the theme “Opposites Attract.” The four showcased concepts, he said, represent “a new chapter of expressive design that inspires confidence, connection, and adventure.”

Domestic Growth, Scaling Up Capacity

M&M is matching its product ambition with manufacturing muscle. The company has announced a ₹27,000 crore investment plan between FY25-27, including ₹12,000 crore for EVs and ₹8,500 crore for ICE vehicles. Products coming out of the NU_IQ platform are a part of this investment.

The company will also add 2.4 lakh units of annual capacity at its Chakan facility, dedicated to the New Flexible Architecture (NFA), branded NU_IQ, which will underpin its next-generation SUVs. This brownfield expansion will raise Chakan’s total output to about 7.5-7.6 lakh units per annum, with some commercial vehicle production being shifted to other plants.

Alongside Chakan, Mahindra’s Nashik plant already contributes 2.5-3 lakh units annually, giving the company a strong second pillar of vehicle production.

To relieve pressure on this hub, the company has expressed interest in acquiring a land parcel near Igatpuri, which currently houses its engine and powertrain facility. While not a vehicle assembly site, the land is being considered as a “filler” to support the broader Nashik-Igatpuri ecosystem.

“We have submitted a letter of expression of interest to the Maharashtra government,” said Rajesh Jejurikar, Executive Director, Mahindra & Mahindra, while clarifying that the move is still preliminary and subject to due diligence and approvals.

The third leg of the plan is a new greenfield facility, expected to add another 2.5–5 lakh units annually over time. Taken together, Mahindra’s total passenger vehicle capacity is projected to cross 1 million units by 2028, led by Chakan and Nashik, with the greenfield plant providing additional headroom of 2.5-5 lakh units in the next phase. The final decision on the plant is yet to be firmed up.

This aggressive capacity build-up is intended to resolve waiting-period bottlenecks–popular models like the Thar, Scorpio-N, and XUV700 have faced long queues–and to prepare for NU_IQ’s rollout from 2027.

Jejurikar stressed the fungibility of the new setup: “The beauty of the architecture is the fungibility it brings in. We don’t have to earmark capacity either for global or domestic, or ICE versus EV. As global builds up, it will be phased and calibrated.”

M&M’s aggressive capacity build-up is aligned with its financial trajectory. The company outpaced the overall market last year with 20% growth and is targeting mid-teen growth in FY26, even as the industry moderates.

Vision 2027: Core SUV Focus

For Mahindra, the “core SUV” is a strategic north star. These are vehicles that are purpose-built SUVs not hatchback-derived crossovers or MPVs. “Our journey to the vision 2027 is built out of our commitment to building authentic, true blue SUVs. And within Mahindra, we have come to call that segment core SUVs,” Nalinikanth Gollagunta, CEO of Automotive Division and ED of Mahindra Electric Automobile Ltd. said.

“In 2022, core SUVs were less than 20% of the market. Today, they’re about 30%. Almost all the growth in India’s passenger vehicle market has been driven by core SUVs, and our SUVs have grown 3x faster than the segment itself,” Gollagunta explained.

This conviction underpins Vision 2027. Mahindra sees headroom to expand its share domestically, not by diluting its DNA, but by democratising premium features. “Even after the last three years of growth, core SUVs are still just about 30% of the entire PV industry. So to us, the white space is the rest of the 70%. It doesn't mean that I'm going to go into that 70% of the market and start to produce micro SUVs, sedans, hatchbacks. We're going to stay true to our core SUV DNA, and go after the market,” Gollagunta said.

“The playbook we have taken in India and what we have done over the last four years is the same playbook we're going to start to play out in the rest of the world,” Gollagunta said. “In India, there’s room to double from here… Globally, the opportunity is even larger, the mainstream SUV market outside India is twice the size of India’s.”

Export Ambitions

M&M’s global playbook for NU_IQ is deliberate. Phase 1 will target South Africa and Australia–markets with RHD compatibility and a proven affinity for rugged SUVs. Phase 2 will focus on the UK, with an EV-first strategy to align with regulatory shifts. Phase 3 will expand to other international markets.

The company has already laid the groundwork with the XUV 3XO and XUV700 in South Africa and Australia, gaining traction beyond the Indian diaspora.

“When you go to any new country, you have to build brand, network, and service capability. That’s why we’re calling this Vision 2027, the full scale will take 2–3 years to build,” Jejurikar explained.

“If you look at the capacity that we are adding that says it all. We won't put capacity if we didn't have conviction that we'll be 80%-85% of the business. The way we look at it is we would rather go slow and steady than going too fast and having duds in the market. We are doing it in a calibrated way. We want to make sure every product lands well and does well,” Gollagunta said.

The export plan balances ambition with caution. Mahindra does not want to overextend, but it recognises the global SUV market as the next frontier.

Kia Syros’ advanced E/E architecture delivers a cutting-edge digital experience

Autocar Professional Bureau — Sat, 16 Aug 2025 08:38:26

Kia India, which introduced the sub-four-metre Syros SUV earlier this year in February, is redefining in-car technology in the segment with cutting-edge features that are differentiating its product, launched in both petrol and diesel options, from the rest of the market.

The Syros, which is mechanically based on a reinforced version of Hyundai Motor Group’s K1 small-car platform, gets a completely-new electrical and electronic (E/E) architecture that is enabling some of the most advanced features in this compact SUV, making it offer a far superior digital experience in the entire category.

To begin with, the Syros gets a central gateway that routes data between different ECUs or modules, while offering network security and control over data flow. This central data hub also provides a secure gateway for external communications by virtue of an embedded SIM (eSIM) in the vehicle telematics control unit (TCU) for enabling various cloud-based services.

The central gateway supports CAN, LIN, as well as Ethernet communication protocols with the latter, according to Kia, being available for select ECUs, likely those for high-bandwidth modules such as advanced driver assistance systems (ADAS), telematics, and infotainment. The Kia Syros comes equipped with an integrated triple-display setup, resulting in a perpetual 30-inch digital cockpit that seamlessly combines the 12.3-inch central in-vehicle infotainment (IVI) system, the 12.3-inch driver digital instrument cluster, and a 5-inch automatic climate control screen bridging the two bigger displays.

The Kia Syros has an integrated triple-display setup, resulting in a perpetual 30-inch digital cockpit.

The control module or ‘silver box’ driving these high-definition screens houses on-board processing power for media integration, wireless connectivity such as Bluetooth and WiFi, as well as vehicle telematics. The IVI offers a top-notch software experience, with well-defined menus and large-sized icons and fonts that result in an extremely fluid, interactive and safety-oriented human-machine interface (HMI) which is focused on minimising driver distraction by amalgamating touch-based controls with physical buttons on the car’s centre console as well as steering wheel.

Clear functional demarcation with the use of scroll-type buttons for adjusting media volume or running through various cluster menus, and toggle switches for changing audio tracks, further embellish the sophisticated HMI layout in the Syros.

Syros gets Over-the-Air (OTA) update capabilities extending beyond the IVI, with upto 16 controllers that can receive on-the-go upgrades for continuous improvements.

Advanced Cloud Integration
Augmenting the digital experience is the Syros’ cloud integration, wherein the compact SUV leverages the eSIM connectivity for external data transmission that enables various services under the Kia Connect 2.0 suite by communicating with Kia’s cloud server.

According to the company, the Syros gets Over-the-Air (OTA) update capabilities extending beyond the IVI, and encapsulating up to 16 controllers that can receive on-the-go upgrades for continuous improvements. Furthermore, real-time vehicle health monitoring and remote diagnostics are some of the key features that leverage the car’s telematics system to communicate with the cloud.

Under the Kia Connect Diagnosis suite, the system continuously collects data from various ECUs inside the vehicle, thereby tracking key systems such as engine, transmission, battery, brakes, and airbags, among others, and monitors them for any anomalies or fault codes. The detection of an error triggers in-car alerts through the infotainment display, while also enabling cloud-based remote diagnosis that can suggest on-the-go troubleshooting or offer the option to schedule a visit to the service centre, directly through the IVI.

Coupled with a mobile phone application, the diagnosis suite also maintains a data log of historical service records, service intervals, and upcoming preventive maintenance schedules, to offer a complete digital experience to the vehicle user by leveraging cloud-based data analytics and machine learning to monitor vehicle health appropriately. The connectivity layer in the Syros could also likely enable the carmaker to explore subscription-based services in the future, which is a key element of the industry’s transition towards software-defined vehicles or SDVs.

A 360-degree camera with high-definition feed on the 12.3-inch central in-vehicle infotainment (IVI) system ensures safe and convenient maneuvering in tight parking and city driving conditions.

Core attributes of the Syros
With a digital-first approach, the Kia Syros offers a highly-advanced and thoroughly modern driving experience, with features such as wireless Apple CarPlay and Android Auto connectivity, electric parking brake with auto hold, and a 360-degree surround-view camera bringing high levels of convenience and safety while manoeuvring the compact SUV even in dense city traffic.

An 8-speaker Harman Kardon audio setup, and segment-first electronic features such as seat ventilation for front as well as rear seats, a panoramic sunroof, and multilingual voice-enabled functions such as those for window operation, further enhance the in-cabin experience. While six airbags and ESC are part of the standard safety equipment, higher trims of the Syros feature radar- and vision-based Level-2 ADAS suite with adaptive cruise control (ACC), front collision-avoidance assist, high-beam assist and lane-keep assist (LKA) acting as key active safety functions.

The Syros' 1.0-litre petrol and 1.5-litre diesel engines get three drive modes – Eco, Normal and Sport.

The compact SUV gets two engine options – a 1.0-litre, three-cylinder, 118hp and 172Nm GDI mill – and a 1.5-litre, four-cylinder, 114hp and 250Nm turbo-diesel unit. While both engines get a 6MT as standard, the petrol comes with the option of 7-speed DCT, whereas the SCR-based diesel engine gets a 6-speed torque-convertor automatic unit as the more convenient choice. Both engines are calibrated for linear power delivery with a strong mid-range performance that aids driveability in both city and highway conditions. The engines get three drive modes – Eco, Normal and Sport – each seeing a noticeable change in the power-delivery map as well as steering feedback, while there are three ESC-based traction modes (sand, mud and snow) on offer to provide adequate traction depending upon the road surface.

The Syros comes with 15-, 16-, and 17-inch wheel sizes depending upon the trim, with a McPherson strut coil spring setup at the front, and a coupled torsion beam axle doing duty at the rear. Despite the large rim size in the higher variants, the suspension setup is calibrated to offer a pliant ride quality, with good straight-line stability even at high speeds wherein body roll becomes evident due to the boxy silhouette of the compact SUV that also sees aerodynamic efficiency being one of its few limitations.

With a tall-boy design that emphasises on liberating the maximum room inside the cabin, and segment-first sliding and reclining rear seats, the Kia Syros offers a comfortable and modern in-cabin experience that is targeted at young family buyers. With an advanced E/E architecture, the car is also future ready to house electrified powertrains that will further utilise the maximum potential of such an agile and advanced digital platform. While the ICE Syros is positioned as a well-differentiated product, Kia India is likely to launch the all-electric Syros in early CY2026.

Powering Ahead: Eaton India’s Growth Engine

Darshan Nakhwa — Wed, 30 Jul 2025 16:20:25

Eaton's India automotive division is firing on all cylinders. After doubling its revenues and tripling profits over the last five years, the component maker is now gearing up for another major leap: a targeted revenue growth of 60-70% over the next five years, with ambitions to outpace the broader auto component market in India.

This growth will be driven by a multi-pronged strategy– one that leans on agile product development, strong export momentum, next-gen technology integration, and a disciplined approach to capacity expansion.

“Over the last five years, our revenues went 2x, and our profit before tax margins grew 3x. Our goal now is to grow faster than the market, with a minimum growth of 60–70% in the next five years,” Shailendra Shukla, Managing Director, Mobility Group, India, Eaton told Autocar Professional. “That’s the minimum. Our aspiration is closer to 2.5x.”

Export Ambition

Today, over 40% of Eaton's India automotive business is export-led, with the company shipping components and systems to customers in the U.S., Europe, Japan, Southeast Asia, China, Australia, South America, and even Africa. That figure is set to increase further in the years ahead. “Export growth has significantly contributed to our performance. From 25% few years ago, it’s now over 40% of our revenue and climbing,” Shukla said.

“In terms of our presence across the globe, directly or indirectly we are touching all the automotive pockets and hubs.” The company is also engaging with several new OEMs, and expects its presence in both Europe and North America to strengthen further. “While these are existing markets for us, our reach is set to deepen significantly,” Shukla said.

While the company is not looking to shift away from domestic opportunities, the scale of global demand, coupled with India’s growing role as a trusted manufacturing hub, makes exports a strong growth lever. According to a NITI Aayog report, India's automotive component production is expected to grow to $145 billion by 2030, with exports tripling from $20 billion to $60 billion.

In FY26, the domestic automotive component sector is expected to clock 7-9% revenue growth, mirroring last fiscal, driven by sustained demand momentum from two-wheelers and passenger vehicles segments, ratings agency Crisil said in a report. In 2024, India emerged as the third largest car market and the largest two-wheeler market in the world.

Despite this the country has a modest share (around 3%) in the global automotive component trade. “The potential to grow exports is enormous. It’s a bigger geography. More markets, more opportunities,” Shukla said. “We expect both exports and domestic sales to grow, but exports could grow faster.”

Capacity Expansion

To support this growth, Eaton is investing in its manufacturing and engineering infrastructure in India. The company has earmarked 7-10% of its revenue annually for capex, covering new machinery, buildings, Industry 4.0 technologies, and localised product platforms. In its Ranjangaon plant, for instance, Eaton is deploying 16 new manufacturing lines, including one for localising the XY shifter–a critical transmission component.

Another plant is being equipped to localise valve actuation systems tailored to meet India's evolving emissions and fuelefficiency regulations. “We’re investing in future growth. That includes machinery, building infrastructure, skilling our people, and new product lines,” Shukla said. “In fact, we invest today for the product that may roll out two years from now.”

Across its two key automotive facilities — Ranjangaon and Ahilyanagar, capacity utilisation is already upwards of 90%, prompting the need for brownfield expansions. “We have space at our plants to cater to growth over the next 5-10 years… We’re optimizing vertical storage and also expanding footprint,” Shukla said.

Product Portfolio

Eaton's India automotive business is spread across a diversified product range. It caters to passenger vehicles, commercial vehicles, off-highway and agricultural equipment. It specializes in creating, distributing, and optimizing power for all types of vehicles and propulsion systems.

The company's current product lineup includes full-range transmissions for CVs, valve and valve actuation systems, aftermarket clutches, fuel emission control, flywheels, electric vehicle components and charging solutions, air flow solutions, central release bearings and more. In addition, the company is working on torque products and gearing solutions, aimed at bolstering its drivetrain and mobility offerings for new-age vehicles.

“We’re active in both internal combustion and e-mobility. In fact, our EV solutions–power connections, power protection–are being prioritized for deeper development,” Shukla said. While EVs still account for a smaller share of revenue, the company is rapidly expanding its electrified product portfolio and targeting India for global programs.

Customer-Centric Engineering

One of Eaton’s key differentiators lies in its deep customer integration. Its engineers collaborate with OEMs early in the development cycle, often co-developing tailor-made solutions. “Automotive sales cycles are long. You engage two years before you win a contract,” Shukla explained. “So, we’re always in active conversations with Indian and global OEMs–even where we don’t yet have a big footprint.”

The company is also betting on its global partnerships to win new mandates in India. For example, where Eaton already supplies a global OEM abroad, it becomes a natural choice when the OEM enters or expands in India. And while India is a highly competitive landscape, Eaton believes there’s room for growth for all, especially in a demand-rich market. “In most product segments, everyone is operating at full capacity. That tells you the opportunity is real, and the pie is growing.”

Joint Ventures, Acquisitions

Globally, Eaton has long pursued a JV-and-acquisition-led growth model, and India is no different. The company already has five joint ventures in the Asia–Pacific region in automotive alone–ranging from clutches and transmissions to valve actuation and electric drive systems. “We have JVs with Cummins, Shaanxi Fast Gear Co, Nittan Valve Co, and others in the region. This model helps us localize quicker and leverage partner strengths,” Shukla said.

On the M&A front, Eaton continues to evaluate inorganic growth opportunities, both in India and abroad. However, specifics were not disclosed. “Our strategy is clear: lead for growth, invest for growth, and execute for growth. And M&A is part of that roadmap,” he said.

Industry 4.0

Eaton has been ahead of the curve in deploying digital manufacturing tools across its India plants. Under its Digital Accelerator Program, every cell on the shop floor features a selection of Industry 4.0 components–ranging from augmented reality and simulation to robotics, digital work instructions, and real-time production performance monitoring.

“We deploy what’s relevant to each cell,” the executive said. “From Pick-to-Light to robotic arms to live dashboards, we’ve digitized across the value chain.” These tools not only drive efficiency, but also improve worker safety and support quality assurance.

In one example, Eaton replaced a visually fatiguing inspection job with a robotic system and digital gauge–leading to better outcomes and reskilling, not job losses. “Industry 4.0, if done right, doesn’t replace people. It upskills them,” Shukla emphasized. “There have been no layoffs. In fact, we’ve redeployed people to safer, higher-value tasks.”

The Culture of Execution

Eaton emphasizes the importance of organizational culture–fostering agility, ownership, and future-readiness. The company’s India operations have benefitted from high localisation, leadership continuity, and a global mindset. “We are future-ready. Our teams are skilled, our processes are digital, and our vision is shared…We’re not chasing growth for growth’s sake–we’re building a sustainable business,” Shukla said. With strong export tailwinds and customer-centric engineering, Eaton’s India automotive arm remains key to its global strategy.

High Stakes For a New Bee: Can Everta Plug Into India’s EV Ambitions?

Arunima Pal — Tue, 29 Jul 2025 18:04:17

Everta, a new entrant in India’s growing EV charging space with a strategic partnership with Epsilon Advanced Materials, a leading battery material solution provider, has bold plans and bigger confidence. The leadership, Benny Parihar and Manasvi Sharma, describe their new venture as a high-tech manufacturing bet poised to capture a significant share of the EV charging market by 2030. But can ambition and capital alone overcome the real-world hurdles that have slowed more seasoned players?

“We see massive potential in this space,” said Benny Parihar, Managing Director, Everta. “It’s not as complex as medical devices, but it’s still high-tech, and we’re applying rigorous manufacturing discipline.”

Parihar is also a board member of a healthcare company called Cryo with over 10 years of manufacturing experience in the health and wellness space. Moving from healthcare to EV charging might sound like a leap of faith, but the discipline of building global supply chains and running high-volume manufacturing plants is something Parihar brings with him.

“Processes, engineering, and manufacturing principles can be applied to any product as long as you have the right team in place,” he added.

What differentiates Everta’s foray from others is its deliberate rejection of the startup playbook. Instead of seeking rapid blitzscaling or chasing flashy valuations, Everta is taking a capital-intensive, slow-burn approach focused on hardware excellence and operational resilience.

However, the EV infrastructure space in India is littered with promising entrants who struggled to scale beyond initial hype due to misaligned market timing and a lack of commercial traction.

Sector experts suggest the challenge isn't just about making chargers—it’s about where, how fast, and for whom they are deployed.

“Charger demand is not linear. It follows EV sales, not the other way around,” points out Ankur Dixit, Head of Business Development, Charging at VinFast India. “You can manufacture all the chargers you want, but unless EV adoption, especially in four-wheelers and fleets, accelerates significantly, those assets will sit underutilized.”

Everta’s confidence stems in part from its self-funded model, free from the short-term pressures of venture capital.

“We’re building with patience,” Parihar explained. “This is industrial manufacturing. It takes time.”

Time, however, may be a luxury the EV infrastructure sector can’t afford. A report by GameChanger Law Advisors and venture capital firm Speciale Invest finds that India has only one public charger for every 135 EVs — far below the global benchmark of one per six to 20 EVs. To meet the 2030 target of eight crore EVs, India would need 39 lakh public and semi-public charging stations. Today, it has just over 25,000.

That gap underscores the scale of the challenge—and the opportunity.

Everta is planning to hit its first-phase goal of 3,000 direct current (DC) chargers by 2027, targeting charge point operators (CPOs), fleets, and commercial vehicle players. Their first facility in Karnataka is being built with a ₹150 crore investment, scalable to over 7,500 units a year, indicating long-term vision.

“Most companies think about charging as a side business,” says Manasvi Sharma, Everta’s CEO. “We’re building a core business—our revenue model, investment and hiring strategy are all built around making and servicing chargers, not diversifying into other verticals.”

The space, however, is already home to incumbents like Delta Electronics, Exicom, ABB India, and others who have years of head start and field-tested deployments.

With such well-entrenched players and tight relationships already forged with OEMs and government contracts, breaking into this space could require more than a strong product—it may need a robust distribution ecosystem and significant price disruption.

Ambitions vs Market Reality

Everta's plan to capture 10–15% of India’s DC charger market by 2030 sounds impressive. But this is a fast-moving market where technology expectations are rapidly shifting. Most OEMs are already migrating towards higher-capacity 120 kW–180 kW DC chargers to support next-gen EVs like the Tata Harrier EV and VinFast’s VF-7, Dixit said.

Everta’s initial focus—60 kW to 320+ kW DC chargers—aligns with this trend.

“We’ve partnered with StarCharge, who already has 2 million chargers deployed globally,” said Parihar. “They’ve been there, done that. Every major OEM vehicle has charged on their platform.”

But experts warn that global tech is no guarantee of local success.

“Setting up to 240 kW DC charging hub can cost ₹70–₹90 lakh. With utilization rates at just 4–5%, payback takes 5–6 years,” says Dixit. “Until that changes, even a great product might not move the needle."

In response, Everta believes that combining globally validated technology with local cost optimisation—targeting a 50% domestic value addition from day one—will be a critical differentiator.

“We’re building with indigenization in mind,” says Sharma. “Not just to meet Make in India requirements but to control quality and cost long-term.”

Yet, as several industry players have learned, price pressure from CPOs, fleets, and government tenders can shrink margins fast, and even well-made products face challenges if service turnaround times or installation complexity slows execution.

Local Manufacturing Realities

Everta emphasized its domestic manufacturing muscle, promising scalable capacity and robust local sourcing. “Our business model is built on local manufacturing, strong quality control, and tech-enabled service,” said Sharma.

Sharma brings a decade of hands-on experience in building India’s earliest EV charging networks. “I helped deploy India’s first public DC charger back in 2017. I’ve worked as a CPO. I know what fails in the field. And more importantly, I know what’s missing,” Sharma said.

What Sharma refers to is a fundamental industry gap—charging hardware is often sold without lifecycle support. “You can’t just sell the hardware and disappear,” he adds. “What India needs is uptime. We’re investing heavily in diagnostics, remote service capabilities, and modular components to ensure maximum availability.”

But experts remain cautious.

“DC chargers may offer better margins, but they also demand uptime and nationwide service support. That’s non-negotiable,” said a senior executive at a rival charging hardware firm. “What we’ve seen is companies fail not because they couldn't build, but because they couldn’t maintain what they built.”

To counter this, Everta is developing a remote diagnostics backbone, capable of over-the-air (OTA) firmware upgrades and fault detection—a feature still missing in many mid-tier chargers.

Internally, the team describes this as “zero-touch maintenance,” aiming to fix 80% of faults without a technician visiting the site. “If we can deliver that, our service advantage becomes significant,” Sharma explains.

But even remote diagnostics require robust grid conditions and backend software integration, both of which remain patchy across non-metro India. Deployment ambitions could quickly collide with infrastructural gaps and power instability.

Big Market, Small Base

FADA’s June 2025 data shows that while EV penetration is growing, electric passenger vehicles now account for just 4.4% of total car sales. That’s after an impressive 80% year-on-year growth, indicating momentum but also highlighting how small the current base is.

For EV infrastructure startups like Everta, this means betting on a future that hasn’t fully arrived yet. The government’s ₹10,900 crore PM E-Drive scheme, with ₹2,000 crore earmarked for public charging, is a strong start. But experts argue that far more will be needed to bridge the infrastructure gap.

Meanwhile, policy uncertainty, state-level delays, and the absence of a uniform nationwide EV infra blueprint continue to pose challenges.

Also, according to NITI Aayog, there's no global consensus on the right charger-to-vehicle ratio. It depends on urban density, commute distances, vehicle mix, and charging behavior.

“We’re not building for today’s EV base,” Parihar clarifies. “We’re preparing for 2027–2030, when EV penetration crosses double digits and charging becomes an operating backbone rather than a pilot project.”

This long-view strategy is commendable, but in a fragmented policy landscape where EV adoption is lopsided across states, Everta’s growth could be highly dependent on few early adopter markets like Maharashtra, Delhi, and Tamil Nadu—limiting national scale.

How Everta Stands Out

Everta’s leadership believes it boils down to focus, execution, and team alignment.

“We’re not chasing IPOs. We’re not chasing buzz. This is an infrastructure play. And infrastructure needs time, grit, and long-term commitment,” said Parihar.

He calls Everta an “industrial startup”—one that is patient, asset-heavy, and built to scale, not flip.

“Our goal is to be the go-to manufacturer for every serious CPO or fleet operator in India,” Sharma said. “We’ve seen the service failures, the reliability issues. We want to solve those with design, diagnostics, and discipline.”

They also insist that India will not just be a market, but a manufacturing and export base.

“As costs come down, we’ll be competitive for Southeast Asia and Africa,” Parihar added. Internally, Everta is also working on next-gen concepts—such as chargers bundled with battery storage and AI-based usage prediction.

“We’re watching how power demand shapes up—especially in Tier 2 and 3 cities where grid reliability is patchy,” Sharma notes.

Final Word: Between Potential and Execution

The EV charging ecosystem is undoubtedly at a turning point. Between state subsidies, rising consumer interest, and a maturing product ecosystem, the next five years could define the sector’s long-term viability.

But turning points demand more than optimism. They require flawless execution, smart network planning, and deep resilience.

Everta has made a bold entry, backed by global technology, self-funded patience, and cross-sectoral experience. But its success will depend not just on what it builds—but where it lands, how long it lasts, and whether the market gets there in time. As Ankur Dixit puts it bluntly, “This isn’t about building the most advanced charger. It’s about putting it in the right place, at the right time—and keeping it running.”

In a market where infrastructure has often failed to keep pace with vehicle rollouts, Everta's claims of patience and precision may be tested by unforgiving market cycles, policy shifts, and the sheer pace of technological disruption.

In a market hungry for infrastructure but wary of half-baked solutions, Everta’s journey from vision to reality will be watched closely.

High Stakes For a New Bee: Can Everta Plug Into India’s EV Ambitions?

Arunima Pal — Tue, 29 Jul 2025 18:04:17

“Processes, engineering, and manufacturing principles can be applied to any product as long as you have the right team in place,” he added.

However, the EV infrastructure space in India is littered with promising entrants who struggled to scale beyond initial hype due to misaligned market timing and a lack of commercial traction.

Sector experts suggest the challenge isn't just about making chargers—it’s about where, how fast, and for whom they are deployed.

Everta’s confidence stems in part from its self-funded model, free from the short-term pressures of venture capital.

“We’re building with patience,” Parihar explained. “This is industrial manufacturing. It takes time.”

That gap underscores the scale of the challenge—and the opportunity.

The space, however, is already home to incumbents like Delta Electronics, Exicom, ABB India, and others who have years of head start and field-tested deployments.

Ambitions vs Market Reality

Everta’s initial focus—60 kW to 320+ kW DC chargers—aligns with this trend.

But experts warn that global tech is no guarantee of local success.

In response, Everta believes that combining globally validated technology with local cost optimisation—targeting a 50% domestic value addition from day one—will be a critical differentiator.

“We’re building with indigenization in mind,” says Sharma. “Not just to meet Make in India requirements but to control quality and cost long-term.”

Local Manufacturing Realities

But experts remain cautious.

To counter this, Everta is developing a remote diagnostics backbone, capable of over-the-air (OTA) firmware upgrades and fault detection—a feature still missing in many mid-tier chargers.

Big Market, Small Base

Meanwhile, policy uncertainty, state-level delays, and the absence of a uniform nationwide EV infra blueprint continue to pose challenges.

Also, according to NITI Aayog, there's no global consensus on the right charger-to-vehicle ratio. It depends on urban density, commute distances, vehicle mix, and charging behavior.

How Everta Stands Out

Everta’s leadership believes it boils down to focus, execution, and team alignment.

“We’re not chasing IPOs. We’re not chasing buzz. This is an infrastructure play. And infrastructure needs time, grit, and long-term commitment,” said Parihar.

He calls Everta an “industrial startup”—one that is patient, asset-heavy, and built to scale, not flip.

They also insist that India will not just be a market, but a manufacturing and export base.

“We’re watching how power demand shapes up—especially in Tier 2 and 3 cities where grid reliability is patchy,” Sharma notes.

Final Word: Between Potential and Execution

But turning points demand more than optimism. They require flawless execution, smart network planning, and deep resilience.

In a market hungry for infrastructure but wary of half-baked solutions, Everta’s journey from vision to reality will be watched closely.

Tata Motors powers up Harrier appeal with new electric variant

Autocar Professional Bureau — Sat, 26 Jul 2025 09:12:44

Tata Motors, which has recently launched the Tata Harrier EV, the all-electric version of its rugged, full-size, monocoque SUV, aims to widen the appeal of this proven product that was first introduced in India in CY2019.

Since the Tata Harrier’s rollout, Tata Motors has clocked total wholesales of 142,608 units till end-June 2025, and had also lent a midlife makeover to the diesel-only Harrier in CY2023. While a market transition towards petrol SUVs has seen the Harrier’s sales down for two consecutive fiscals, the company has been quicker to adapt to the electrification trend by introducing the Harrier EV.

Launched on June 27 with prices ranging from Rs 21.49 lakh to Rs 28.99 lakh, ex-showroom, the Harrier EV aims to widen the appeal of Tata’s rugged SUV to a wider audience which is now seeking cleaner propulsion options due to growing governmental restrictions dissuading buyers from opting for diesel-powered vehicles.

The Harrier EV is uniquely positioned as a full-size, all-wheel drive electric SUV that comes powered by two electric motors – one on each axle – in its all-wheel drive or ‘Quad Wheel Drive’ version, the latter in Tata’s marketing nomenclature. While Tata Motors has leveraged the existing Harrier to undertake this ICE-to-EV conversion, the company has made significant changes to its underpinnings, including the suspension and chassis, to seamlessly incorporate the battery pack which sits on the floor between the two axles.

According to Tata Motors, the chassis has been modified to eliminate the exhaust tunnel which is particularly evident in the rear floor pan area of an ICE vehicle, and turn it into a completely flat member to accommodate the battery pack. The company has termed this revised platform as its ‘acti.ev plus’ architecture, which also extends to other layers, including a completely new digital-interface layer that enables several software-oriented modern functions on the Harrier EV.

Tata Motors has also uprated the torsional stiffness of the chassis by introducing high-tensile members that determine new load paths to distribute the impact of frontal, lateral, as well as vertical forces across the monocoque, thereby strengthening the cabin integrity. As a result, the Harrier EV has scored a full five-star rating in the Bharat NCAP crash tests and boasts benchmark scores of 32/32 for adult occupant protection and 45/49 for child occupant safety.

The Harrier EV comes equipped with top-notch active and passive safety equipment, including seven airbags, ESC, and radar-cum-vision-based Level-2 ADAS. The ADAS suite offers features such as lane-keep assist, adaptive cruise control, and autonomous emergency braking (AEB), with a setting to disable the latter for slow-speed and congested driving environments.

Despite a raised boot floor that houses the spare wheel, the SUV also boasts a storage capacity of 502 litre, expandable up to 999 litre with the second-row folded flat. Furthermore, there is the presence of a front stowage box under the hood that offers 67-litre storage in the rear-wheel drive version, and a 35-litre capacity in the all-wheel drive variant.

Styled to win over buyers
From the outside, the Harrier EV retains the unmistakable Harrier silhouette with its imposing design cues such as a raised bonnet, flared wheel arches, tall stance and a rising belt line which complements the large door panels. Full-LED lighting upfront, an enclosed grille in the EV version, and diamond-cut, aero-optimised 19-inch wheels give it a distinctive yet recognisable appearance. Tata Motors offers the Harrier EV in five colour options – Nainital Nocturne, Pristine White, Pure Grey, Empowered Oxide, and Matte Stealth Black.

On the inside, the cabin gets a dual-tone layout with electronically-adjustable memory and ventilated seats upfront, rear comfort headrests with a flip-down armrest, a panoramic sunroof, and ambient lighting synced with drive modes as well as music. The flat floor at the rear liberates adequate space for a third occupant on the rear bench, whereas dual-zone climate control with integrated rear AC vents on the B-pillar aid towards enhancing occupant comfort.

Tech tour de force
The centrepiece of attraction inside the Harrier EV’s cabin is a 14.53-inch digital infotainment display sourced from Samsung. The QLED screen is complemented by a fully-digital instrument cluster that also doubles up as the navigation display. Both the screens are powered by Harman’s intuitive human-machine interface that also offers a host of entertainment-cum-drive setting features embedded in the touchscreen.

The Harrier EV gets a 10-speaker Harman Black audio setup with Dolby Atmos, wireless phone charging upfront, a dual-65W mobile charging port at the rear, and a segment-first electronic IRVM which also doubles up as a dual front-and-rear dash cam that records footage in full-HD resolution. A 540-degree surround-view camera, digital key with e-access through mobile phone, as well as a summon mode with auto-park assist make the Harrier EV offer the latest in technology through its digital layer that enables seamless interaction with the occupants, as well as infrastructure.

The car comes with Tata’s ‘Arcade.ev’ suite of applications that offer entertainment features like gaming that can be accessed while the vehicle is stationary, such as during charging, as well as an integrated digital wallet – DrivePay – that enables contactless payments at parking booths and charging stations which can be identified using the in-built connectivity. Tata Motors has christened this digital layer in the Harrier EV as TiDAL, which is an acronym for Tata Intelligent Digital Architecture Layer, that empowers the connectivity, ADAS suite, as well over-the-air updates for receiving frequent feature upgrades and improvements throughout the vehicle lifecycle by virtue of several domain-specific controllers.

State-of-the-art electric drivetrain
The Harrier EV comes with two battery pack options – 65kWh and 75kWh – with the company claiming a range of 538km for the former and up to 627km for the latter, which also comes with the option of a dual-motor setup or Quad Wheel Drive (QWD) in Tata-speak.

The Harrier EV is a rear-wheel drive SUV by default, wherein it sees the primary PMMS motor develop 238hp. In the QWD variant, the front induction motor assists the primary motor by developing an additional 158hp to take the combined power output to 313hp and 504Nm of peak torque value. The company has calibrated the drivetrain to deliver the power in a linear fashion, wherein the Harrier EV QWD claims a 0-100kph time of 6.3 seconds with the ‘boost’ mode assist.

With an independent front and rear suspension that now gets frequency-dependent damping (FDD) shock absorbers, the Harrier EV offers a composed ride even over broken patches that are cushioned away from the cabin. While a low centre of gravity aids handling, the tall stance of the SUV induces some vertical movement at higher speeds around corners. Tata Motors has focused on the off-road capability of this all-electric SUV, which offers six terrain modes, including mud-and-rut, sand, and snow, among others, to differentiate the Harrier EV from its chief rivals in the price segment.

Tata Motors claims a charging rate of C1.5, with the Harrier EV capable of recharging from 20% SOC to 80% in 25 minutes with a 120kW DC fast charger. The battery pack, comprising cylindrical cells sourced from Octillion Power Systems, is liquid cooled and comes with a lifetime warranty. With a growing market for technologically-advanced, and value-for-money EVs, the latest all-electric introduction from the homegrown automaker is aimed at expanding its EV market share which stands at 38% in H1 CY2025.

Size-wise, the Harrier EV is a direct competitor to Mahindra’s all-electric XEV 9e and BE 6 SUVs which are built on a ground-up EV platform and adopt a completely different approach of eyeing the electric vehicle market with a futuristic design language. Tata Motors, on the other hand, has deployed a tried-and-tested formula and offered a more realistic-looking and relatable product in the Harrier EV that promises zero tailpipe emissions, but in a highly capable package.

Tata Motors is bullish about the Harrier EV giving it a fresh charge in India's competitive electric SUV market. Let's wait and see how the value-conscious EV buyer takes to the latest zero-emission vehicle from the company.

Tata Motors powers up Harrier appeal with new electric variant

Autocar Professional Bureau — Sat, 26 Jul 2025 09:12:44

Zen Mobility’s Micro Pod Aims to Bridge Last-Mile Delivery Gap

Yukta Mudgal — Fri, 25 Jul 2025 16:26:10

India’s electric cargo three-wheeler market is expanding rapidly, dominated by established players and volumedriven startups. Yet, in this crowded landscape, Zen Mobility is positioning itself as a challenger brand with a focused proposition. Rather than competing head-on in the high-volume race, the company is targeting a specific gap in urban last-mile delivery with its Micro Pod—a compact, modular electric vehicle designed for regulated, purposebuilt logistics in the e-commerce ecosystem.

India’s e-commerce market, valued at over $120 billion, spans categories like fashion, food and beverages, and other essentials. As digital consumption continues to grow, micro-mobility companies are adding another “e” to the mix—electric three- and two-wheelers. While established players dominate the electric three-wheeler cargo segment alongside emerging moped startups, companies like Zen Mobility are looking to differentiate themselves in e-commerce deliveries.

Zen’s offering is the Micro Pod—a compact, light electric vehicle, distinctive for its design and modular cargo boxes. Zen Mobility, founded in 2019 by Namit Jain who also leads the company as CEO, draws on the 35-year manufacturing legacy of the NTF Group, a Tier 1 supplier to OEMs like Maruti, Toyota, and Volkswagen. Backed initially with Rs 20 crore from the group, the startup now aims to raise Rs 100 crore by the end of 2025–26 to support its retail rollout and scale up production capacity.

An Evolving Market

India’s rapidly expanding and intensely competitive three-wheeler market is broadly segmented into L3 passenger rickshaws, L5 cargo vehicles, and L3 e-cart rickshaws. Electric three-wheelers account for over 60% of the market, followed by CNG at 28%, diesel at 11%, with the remaining share split between LPG, petrol and others. Zen Mobility’s Micro Pod is positioned closest to the L3 e-cart category, specifically engineered for short-haul, last-mile urban logistics where compact form, efficiency, and reliability are critical. According to data from the Federation of Automobile and Dealers Associations (FADA), 42,213 e-rickshaws (L3) were sold in June 2025, out of which 6,846 were e-carts.

Smaller form factors such as e-karts and pods are better suited for short-range operations like food delivery. “For deliveries within a 3 to 5 km radius, the L3 [e-cart] format works best,” pointed out Hemal Thakkar, Senior Practice Leader & Director at Crisil. “These vehicles typically come with smaller batteries but can still offer a real-world range of 80 to 90 km on a single charge. If the average delivery radius is around 5 km, operators can easily manage up to 16 trips a day — which is quite promising,” he noted.

However, Zen Mobility is still a minnow in this market. In its first commercial year (2024-25), Zen Mobility sold around 2,000 units of the Micro Pod—a modest figure compared to established companies such as YC Electric, and Saera Electric Auto that sold over 44,000 units and 28,000 units, respectively. However, segment-wise figures for e-cart loaders from both companies were not available.

Zen Mobility, however, is not positioning itself in the volume-driven race. “Competition is a given, but the addressable market is significant,” said Jain. “Major delivery platforms like Zomato and Swiggy collectively deploy several lakh riders daily. Even targeting a small share— say 5–10%—translates to a sizable potential for vehicles designed specifically for last-mile delivery.”

Beyond E-Rickshaws

The Micro Pod fills the gap between informal, unregulated e-rickshaws and more expensive L5 cargo three-wheelers. It has a payload capacity of 100–400 kgs, a range of over 120 km, and is fully road-legal. “Our product sits in a space where there is no direct competition. It’s not an L5 vehicle, not an e-rickshaw—it’s a micro cargo platform,” Jain explained.

While mopeds from startups like Zypp Electric, Bounce Infinity, and Yulu handle many e-commerce deliveries today, Zen Mobility wants to reshape the category. “Twowheelers used for doorstep deliveries are unsafe. Many are being used commercially without proper safeguards. It’s not legal, and it’s not sustainable,” Jain said. “We had to create something purpose-built.” The Micro Pod comes in two variants—R5x and R10x—and took nearly five years to develop: three years in design and two years in road-testing across 3–4 lakh kilometers.

“Initially, everything was failing—suspension, brakes. But we kept improving. Now the product is robust, and customers are seeing the value,” he added. Thakkar pointed out that the future of such vehicles will also depend on the extent of government support and policy direction. “For shorter distances, say, in the range of 3 to 5 km, they do make economic sense, as the investment is lower and the vehicle cost is relatively affordable,” he said.

Price Point and Differentiation

Companies like YC Electric and Saera Electric currently offer e-cart loaders priced between Rs 1.4 lakh and Rs 1.8 lakh, with payload capacities ranging from 300 to 500 kg. Zen Mobility’s Micro Pod, though similar in payload to these e-carts, differentiates with a modular design approach. The base vehicle is priced at Rs 1.49 lakh, but what sets it apart is the range of interchangeable cargo boxes, which cater to specific delivery needs. When equipped with these purpose-built boxes, the total cost rises to around Rs 1.99 lakh.

These cargo boxes are central to Zen’s value proposition, offering businesses the ability to customize vehicle functionality based on operational requirements. “Our three-wheeler stands apart with its fully customizable cargo box, offering businesses unmatched flexibility to optimize space, branding, and functionality,” said Jain.

Each box variant is designed with a specific use case in mind, claims the company. Its MP FEV box is suitable for transporting semi-large parcels, typically used in e-commerce, while the MP LWB box is designed for large grocery orders and packets. It also has boxes for transporting dairy products and pharmaceuticals with active cooling, as well as those for rugged use, such as moving raw materials, supporting intra-factory logistics, and handling items like plants, gardening tools, or soil.

From Pods to Presence

Zen Mobility currently operates through three business models: direct B2B sales, leasing via its proprietary Zenflow platform, and a Fleet-as-a-Service (FaaS) offering that bundles rider management, vehicle financing, and maintenance. Revenue is presently diversified across segments, with 30% from B2B, another 30% from B2C, and the remaining split between driver-owned vehicles (20%) and exports (20%).

The company has set a target of selling 5,000 units in the financial year 2026—more than double of 2024-25 volumes, but in a highly fragmented and price-sensitive market, execution will be key. Its Manesar plant has a rated annual capacity of 30,000 units, and a new 10,000-unit facility is underway in Bengaluru.

A third location, potentially in Pune or Gujarat, is being explored to eventually scale capacity to 50,000 units by 2030. However, actual utilisation of these capacities will depend on sustained demand, dealer ramp-up, and capital infusion. Zen’s retail ambitions are 50 exclusive showrooms across Tier 1 and Tier 2 cities, signaling a shift toward massmarket visibility.

Yet, success in this segment will depend on dealer viability, after-sales support, product reliability, and fleet economics in real-world usage. As Jain put it, “The mass market in India is our focus. Every kirana store, dairy shop, and local restaurant needs efficient delivery vehicles. We need to be next door to them.” Turning this vision into a scalable and profitable retail footprint will be the true test.

Global Strategy

Zen Mobility’s Micro Pod recently made its international debut in Dubai, garnering interest from Europe and the Middle East. However, converting early interest into consistent export volumes will depend on successfully navigating certification hurdles, logistical challenges, and post-sales support in unfamiliar markets. Exports are expected to begin by late 2025. Jain points to pricing arbitrage as a key advantage: “Even the cheapest twowheeler in Europe sells for €5,000–€6,000—that’s Rs 5–6 lakh. Our offering is very competitive.”

Despite these opportunities, Zen remains a bootstrapped startup, funded entirely by its parent group so far. Its plan to raise Rs 100 crore by 2025–26 aims to support simultaneous retail expansion, export market entry, and new manufacturing capacity. But balancing these priorities, each capital- and execution-intensive could prove challenging unless supported by strong investor interest, operational discipline, and strategic focus.

Zen Mobility currently deploys lithium iron phosphate (LiFePO4) battery packs across its vehicles and is working on second-life battery solutions to enhance sustainability and lifecycle value. “We want to avoid recycling as the first option. Refurbishing old batteries can extend their value significantly,” Jain said. While a sensible direction, the commercial and regulatory feasibility of second-life battery use is still evolving and may require additional testing, partnerships, or policy support.

Looking ahead, the company is also exploring alternative battery chemistries such as aluminium-air, sodium-ion, and solid-state technologies. Jain is optimistic that “the next two years will bring better packs, and we won’t be as dependent on China.” However, many of these technologies remain in early development stages globally, and commercial readiness, particularly in cost-sensitive segments like threewheelers, could take longer than anticipated.

Zen is also eyeing hydrogen-powered vehicles as part of its longer-term roadmap. “Today, hydrogen is expensive not because of the fuel itself, but because of distribution. Once on-site electrolyzers become viable, everything will change,” Jain noted. While the forward-looking intent is clear, hydrogen adoption in light commercial vehicles remains distant, especially in India, where infrastructure and economics still pose significant barriers.

Rare Earth Blockage: A Look at Alternate Technologies

Arunima Pal — Sat, 19 Jul 2025 18:34:41

Electric vehicle manufacturers are accelerating their search for alternatives to rare-earth permanent magnet motors, driven by China's overwhelming control of the supply chain and mounting concerns about cost volatility and environmental impact. While rare-earth permanent magnet synchronous motors (PMSMs) still dominate over 80% of the EV market due to their superior power density and efficiency, emerging alternatives are rapidly gaining traction as automakers seek to reduce their dependence on Chinese-controlled materials.

Technical Alternatives

Induction motors: Tesla's proven path induction motors represent the most mature alternative to rare-earth PMSMs, operating on electromagnetic induction principles without permanent magnets. Tesla pioneered their use in EVs with the original Roadster and Model S, achieving 85-95% efficiency depending on operating conditions. These motors generate a rotating magnetic field in the stator that induces currents in the rotor's copper or aluminum bars, creating torque through controlled slip.

Performance characteristics include excellent starting torque and robust construction, though they suffer from inherent slip losses that limit maximum efficiency. Tesla's Model S induction motor achieved over 90% efficiency in optimal regions while delivering 430 Nm of peak torque. The technology offers 20-30% lower material costs compared to rare-earth motors and eliminates supply chain vulnerabilities, though power density remains lower at 1-3 kW/kg versus 3-5 kW/kg for PMSMs.

Switched reluctance motors: Simple but challenging, switched reluctance motors (SRMs) operate on variable magnetic reluctance principles, with both stator and rotor featuring salient poles. The rotor aligns with energized stator poles to minimize magnetic reluctance, creating torque through sequential switching. This design eliminates all permanent magnets and rare earth materials, using only steel laminations and copper windings.

Technical advantages include exceptional fault tolerance, wide operating temperature ranges, and the simplest construction among motor types. Manufacturing costs can be 40-60% lower than rare-earth motors, making them attractive for cost-sensitive applications. However, SRMs face significant challenges including 10-30% torque ripple, acoustic noise, and complex control requirements. Recent research focuses on advanced control algorithms and optimized switching strategies to mitigate these issues.

Wound-field synchronous motors: Controllable magnetism Wound-field synchronous motors (WFSMs) replace permanent magnets with electromagnetically excited rotor windings, enabling precise control over magnetic field strength. This approach offers 90-96% efficiency with superior field-weakening capabilities compared to PMSMs. Recent prototypes demonstrate 7.19 kW/L volumetric density and torque density of 17.22 Nm/L, approaching PMSM performance levels.

The technology provides variable torque capability through field current control and eliminates rare earth dependency, though it introduces rotor complexity and field winding losses. Manufacturing costs are potentially 15-25% lower than PMSMs, but thermal management of rotor windings remains challenging.

Externally excited synchronous motors: BMW’s fifth-generation eDrive marks a breakthrough, showcasing externally excited synchronous motor (EESM) technology, featuring current-excited synchronous motors with no rare earth elements. Implemented in the i4, iX, and i7 models, these motors achieve superior efficiency at high speeds compared to PMSMs while offering precise magnetic field control.

Performance benefits include up to 4% higher efficiency than PMSMs in certain operating conditions and 30% performance improvement over previous generation motors. The technology eliminates coasting losses associated with permanent magnets and provides enhanced regenerative braking capabilities. However, field winding losses at low speeds and increased control complexity present ongoing challenges.

New Innovations

The landscape of rare-earth-free motor technology is rapidly evolving, driven by breakthrough materials and novel designs. Niron Magnetics has developed revolutionary iron nitride magnets from abundant iron and nitrogen, achieving performance equal to rare earth magnets while reducing costs by 50% and weight by 40%. The company secured $33 million from GM Ventures and Stellantis Ventures in 2023, with commercial production planned for 2025.

ZF's I2SM technology represents another significant advancement, integrating inductive excitation within the rotor shaft to eliminate brushes and slip rings. This design achieves 15% lower energy losses compared to conventional excited synchronous motors while requiring 50% less installation space.

The technology demonstrates comparable torque density to PMSMs without rare earth dependency. Axial flux motors are gaining prominence for their exceptional power density, achieving 7-12 kW/kg compared to 3-5 kW/kg for traditional radial flux motors. Mercedes-Benz's YASA subsidiary targets 220 kW in a 7 kg package, representing a 31 kW/kg power density that significantly exceeds current PMSM capabilities.

Industry Adoption Strategies

Automaker strategies vary significantly in their approach to rare earth alternatives. Tesla, despite pioneering induction motors, has transitioned to all-permanent magnet motors across its current lineup while announcing plans to eliminate rare earth elements from future drive units. The company reduced rare earth usage by 25% between 2017- 2022 and is exploring ferrite magnet alternatives. BMW leads EESM adoption with current production implementation across multiple models, demonstrating the technology's commercial viability.

Renault pioneered EESM technology in 2012 with the ZOE, producing approximately 426,000 units before transitioning to nextgeneration platforms. General Motors employs a hybrid approach with its Ultium platform, combining a 62kW induction motor for AWD assist with rare-earth-minimized permanent magnet motors.

The company's partnership with Niron Magnetics and MP Materials demonstrates a dual strategy of supply chain diversification and alternative technology development. Toyota focuses on heavy rare earth elimination, achieving rare-earth-free magnets in its latest Camry hybrid by substituting expensive dysprosium and terbium with more abundant lanthanum and cerium. This approach reduces material costs from $100/kg to $5-7/kg while maintaining performance.

While rare earth PMSMs maintain performance leadership with 93-95% peak efficiency and 10-12 kW/kg power density, alternative technologies offer compelling trade-offs. Wound-field synchronous motors achieve 90-96% efficiency with 15-25% cost reduction in materials. Induction motors provide 20-30% lower material costs with 88-92% efficiency.

Switched reluctance motors offer the greatest cost savings at 40-60% reduction while accepting 85-90% efficiency. The economic analysis reveals that alternative technologies benefit more from manufacturing scale effects, with projected 15-25% cost reductions through learning curves by 2030. Current material cost advantages are substantial—ferrite magnets cost 10-20 times less than rare earth magnets, while steel and copper provide more stable, diversified supply chains.

HYUNDAI CRETA EV: Off to a Slow Start

Autocar Professional Bureau — Tue, 15 Jul 2025 07:54:13

In a bustling South Mumbai showroom of Hyundai, two versions of the same vehicle tell starkly different stories. The Hyundai Creta, a mid-size SUV that has dominated the mid-size SUV category since its introduction in 2015, continues its victory march, notching up another 16,000 to its 1 million-plus sales tally.

Barely 10 metres away, its electric twin sits in a quieter corner. The contrast is striking: Hyundai sells more of the standard Creta in a day than it does the electric version of the model in an entire month. Indeed, in the first six months since launch, the Korean carmaker has managed to sell only around 4,000 of these electric cars, compared to nearly 1 lakh (100,000) units for its ICE counterpart during the same period. In fact, the ICE variant hit its highest ever domestic sales at 18,522 units in January 2025.

The EV, on the other hand, seems to be heading in the other direction. Soon after bookings were started in January, Creta EV sales spiked at around 850 units in March, going by data from Federation of Automobile Dealers Association. Since then, they have been on a downward trend, dropping first to 677 in April, and then to 606 in May and finally, to 512 in June 2025, according to FADA.

This gives Hyundai a share of just 3.9% in India’s electric car market, a far cry from its target of 15%. Similarly, against the 10% electric penetration projected for the Creta at the time of launch, EVs made up only around 3.2% of the total Cretas sold in June.

Caught Between Two Stools

The biggest problem ailing the model seems to be one of identity crisis: At a starting ex-showroom price of around Rs 18 lakhs, the EV is priced about 30% above the ‘mainstream’ of the EV segment in India, inhabited by models such as Tata Nexon (Rs 12.49 lakh) and MG Windsor (Rs 13.99 lakh).

At the same time, Creta EV cannot be clubbed with the more expensive, premium models such as Mahindra BE 6 and Tata Harrier because of its underwhelming features and specs.

This ‘positioning’ confusion is not just a matter for Hyundai’s marketing executives to worry about, but a real dilemma for buyers. "At this price, I expect the best, not just the basics,” pointed out a finance professional and car enthusiast. Like many other potential customers, the Kolkata-based professional was disappointed by the features and specifications on offer.

“When a key rival is promising all-wheel drive and a massive range, why would I settle for a front-wheel-drive-only setup? It doesn't feel future-proof,” he asked, referring to Tata Harrier EV, which ranges from Rs 21.50-27.50 lakh.

His reaction is not unique or isolated, according to our channel checks. A senior sales advisor at a Hyundai dealership in South India said the Creta EV's entry-level EC variant has seen very low bookings.

The dealer explained that most customers walk in excited about an electric Creta, but their enthusiasm wanes when they see the EC variant in person. “The basic specification feels inadequate for the price point,” he said.

In the end, customers who walk in for the EV end up booking diesel SX variants or even the Verna CVT instead, he said.

A shopfloor manager in Mumbai confirmed a similar trend, adding that the Creta Electric often serves as a footfall driver, with customers often opting for the petrol or diesel version in the end. One senior manager noted: "65% to 70% of EV inquiries end in a switch to the ICE model, primarily due to lower upfront costs for a familiar design and feature set."

Model	Price Range (₹ lakh)	Battery (kWh)	Motor Power (kW)	DC Charging Speed
MG Windsor	13.50-15.50	52.9	100	60kW
Tata Curvv EV	17.49-21.99	55	123	70kW
Creta Electric	17.99-23.49	51.4	126	50kW
Mahindra BE 6e	18.90-23.50	59-79	210	180kW
Tata Harrier EV	21.49-27.49	65-75	175-291	120kW

The Problems of the ‘Convert’

The feedback from potential customers and salespeople suggest that in the Rs 20-24 lakh segment, expectations remain high, leaving little room for compromise. Creta’s evolution—from an ICE SUV to an EV—poses particular challenges.

They point out that the Creta Electric is not a purpose-built EV, but a conversion of its existing internal combustion engine (ICE) platform. While this approach is cost-effective, it has resulted in design compromises and perception issues. For example, even though the ground clearance remains decent at 190mm, a visible battery pack beneath the chassis is perceived as an aesthetic flaw.

"I was genuinely excited for it, but the first thing I noticed was the exposed battery pack underneath,” noted another enthusiast. “It looks like an afterthought, and makes you constantly worry about scraping it on our infamous speed bumps," he added.

Part of the reason for such reactions may be simply the stage at which the Indian electric car market remains. Like in the case of other technological shifts, the initial buyers tend to be the early adopters—the truly savvy customers who want it all. Unfortunately for Hyundai, the Creta EV’s launch was accompanied by the launch of several purpose-built EVs, leaving converted ICE vehicles looking increasingly outdated.

This sentiment was reflected in the words of another potential customer: "Why should I pay such a premium for an electric car that feels like a compromise. It’s the same Creta I know, but with a battery pack shoehorned in and a much higher price tag. It makes more sense to just buy the top-spec petrol and save a fortune!"

Market research indicates that a potential EV customer dedicates at least 3-4 weeks to comprehensive cross-brand comparisons before making a purchase decision, and walks into the showroom with data sheets and spec comparisons. Moreover, the buzz is increasingly dominated by rivals that promise a generational leap in technology, putting the Creta EV's more conservative feature set under the shade.

Hence, says a South India-based car dealer, Creta’s price range of Rs. 17.99–24.38 lakh positions it at a premium that demands compelling value justification. “Creta EV lacks a distinct electric vehicle identity, failing to make customers feel they are purchasing something futuristic. The design essentially appears as another Creta that happens to be electric, rather than a purpose-built EV with unique characteristics,” he said.

In all this, Hyundai’s traditional calling card—its reputation for quality and service—seems no longer to be a decisive differentiator, as the early adopter crowd seem to be only too eager to trade in brand loyalty for technical superiority—such as charging speed and battery capacity.

“They chose an NMC battery. My research shows LFP chemistry, which Tata and others use, offers better longevity and is safer in our hot climate. But the absolute deal-breaker for me? No lifetime warranty on the battery. Competitors are offering it, and that peace of mind is non-negotiable on a multi-lakh rupee investment," noted a car enthusiast.

Similarly, the market is increasingly showing a preference for brands that demonstrate clear electric vehicle expertise and innovation, suggesting a higher degree of consumer discrimination than initially anticipated.

"While competitors offer a broader range of EVs at different price points, Hyundai's electric offerings are limited to the Creta and the higher-priced Ioniq 5,” pointed out a Hyundai dealer in Mumbai.

Teething Troubles

In addition to product and positioning problems, the Creta roll-out has also had its fair share of roll-out related hiccups.One dealer mentioned receiving demo cars almost two weeks late, creating a problem since EV customers behave differently from ICE customers. He pointed out that such customers refuse to book without comprehensive test drives and detailed charging explanations, making the demo vehicle crucial for sales conversion.

The dealer also noted that variant naming conventions using EC, EM, and EL designations are unfamiliar to customers, with features appearing to jump in seemingly random ways across variants. This has created difficulty in defending the value proposition to potential buyers, he noted.

Moreover, he pointed out, marketing materials struggled to communicate electric-specific benefits beyond environmental impact, often failing to address the technological advantages and unique ownership experience that electric vehicles can provide.

Other limiting factors include Hyundai's comparatively slower rollout of public charging partnerships and lack of highly trained sales staff. A Mumbai-based dealer pointed out that EV sales require specialized knowledge and systems—things that many dealerships are still developing. In many cases, he pointed out, knowledgeable customers often know more about charging technologies than the sales personnel.

The Road Ahead

The path forward requires a comprehensive reimagining of Hyundai's approach to the electric vehicle market, moving beyond traditional automotive strategies to embrace the unique demands of EV customers.

Developing clearer variant differentiation and value proposition communication becomes essential, as customers need to understand exactly what they're paying for at each price point. Accelerating dealership training programs for EV-specific customer education will help bridge the knowledge gap that currently undermines sales conversations.

Strategic partnerships with charging infrastructure providers should offer comprehensive ecosystem solutions rather than fragmented charging options, addressing one of the primary barriers to EV adoption. Similarly, pricing adjustments for entry-level variants may be necessary to improve market accessibility and compete effectively with emerging EV brands.

Enhancing design elements that clearly differentiate the electric variant from its ICE siblings will help establish the unique identity that EV customers seek.

Meanwhile, the real test for Hyundai will come in 2026, with the planned launch of a mass-market EV built on a dedicated electric platform. The company's ability to translate its legacy dominance into the electric era will depend on its willingness to evolve its product strategy and match the expectations of India's increasingly discerning EV customers. Until then, the two Cretas will continue to coexist in Indian showrooms—one a testament to past success, the other a reminder of the challenges ahead.