Get In Touch
May24 104x80.jpg
Current Issue

animation-neutral-tts-300x100' width='300' height='100' border='0

By FY 2026-27, We aim to capture 35 per cent of international market share

By Staff Writer ,

Added 19 April 2024

Uday Narang, Chairman, Anglian Omega Group & Omega Seiki Mobility, discusses his ambitious expansion plan, targeting 35 percent of the global market share by FY 2026–27. The company also aims to expand into electric trucks, prioritise leasing, diversify two-wheelers, introduce cargo e-three-wheelers, and venture into drone services.

From being an investment banker to joining your family-business and now being the Founder of Omega Seiki Mobility (OSM), how do you look back at your journey? What compelled you to start on your own?

Reflecting on my professional journey, transitioning from the realm of investment banking to a pivotal role in our family business, and ultimately founding Omega Seiki Mobility (OSM), has been a transformative and enriching experience. The decision to embark on my entrepreneurial journey with OSM was driven by a confluence of factors. Firstly, the dynamic landscape of the electric mobility sector presented a compelling opportunity to contribute meaningfully to the burgeoning sustainable transportation ecosystem. Recognising the potential for innovation and disruption in this space, I felt a strong sense of duty to leverage my skills and expertise to make a positive impact.

Additionally, the intrinsic motivation to build something of lasting value, coupled with the desire to chart an independent course and create a legacy, served as the impetus for venturing into entrepreneurship. The vision for OSM goes beyond mere business; it is rooted in a commitment to advancing clean and efficient mobility solutions, aligning with broader global efforts toward environmental sustainability.

In a testament to our dedication and market acceptance, I am delighted to share that OSM has achieved a significant milestone by successfully selling 10,000 vehicles. This achievement not only underscores the market demand for our innovative electric mobility solutions but also highlights our commitment to delivering reliable and sustainable transportation options. In hindsight, the journey has been characterised by challenges, learnings, and moments of triumph. Each phase has contributed to my growth, reinforcing the belief in the transformative power of innovation and dedication. I am immensely proud of what we have achieved at OSM, and I remain steadfast in my commitment to driving excellence and sustainability in the evolving landscape of electric mobility.

You envision OSM becoming the Tesla of the East for cargo vehicles, and simultaneously, you are striving to become a globally top player in the commercial electric vehicle segment by 2025. How are you working towards fulfilling this ambition and vision?

At Omega Seiki Mobility (OSM), we are tirelessly working towards transforming our vision into reality – to become the "Tesla of the East" for cargo vehicles and a prominent global player in the commercial electric vehicle segment by the year 2025. Our strategic approach involves an unwavering commitment to innovation, an expansive range of offerings, and the incorporation of cutting-edge technologies across our entire portfolio. In our relentless pursuit of innovation, we've set ourselves apart by ensuring that each of our electric vehicles is equipped with fixed batteries, providing stability and reliability in performance. The integration of 5-minute fast-charging capabilities and swap battery technology further amplifies the practicality and efficiency of our electric vehicles.

Our diverse product portfolio covers a wide spectrum of electric three-wheelers, catering to various market segments, including commercial, passenger, cold chain, longest range, and garbage tipping. The upcoming launch of our electric trucks, tailored for affordability in business-to-business (B2B) markets, reflects our commitment to providing sustainable solutions for cargo transportation. Additionally, our focus on leasing options for business-to-consumer (B2C) markets aligns with our strategic goal of making electric vehicles more accessible to a broader audience.

This year, we're expanding our two-wheeler product portfolio to include passenger options, ensuring a more comprehensive range that caters to the diverse needs of our consumers. One of our flagship additions is the cargo electric three-wheeler, designed with an impressive payload capacity of 1,500 kgs, addressing transportation needs typically handled by conventional trucks.

In a forward-looking move, OSM is set to launch drone services with versatile applications across sectors such as logistics and agriculture. This initiative underscores our commitment to exploring innovative technologies beyond traditional electric vehicles, providing holistic solutions for various industries.

A significant milestone in our journey towards sustainability is the recent launch of India's first green hydrogen-powered three-wheeler. With an impressive range of 500 kms on a single tank, this vehicle exemplifies our dedication to pushing the boundaries of green technology and establishing a leadership position in the rapidly evolving landscape of sustainable mobility.

What kind of demand you are witnessing for EV vehicles, specifically from metros and non-metros?

The electric vehicle (EV) market in India is experiencing significant demand, with distinct trends observed between metros and non-metros. In metros, 2023 indicates that 62 per cent of EV intenders are concentrated in the top 10 cities, showcasing the role of these urban centres as early adopters. The presence of over 50 per cent of India's public charging stations in the top 8 metro cities contributes to the accessibility for urban EV owners. Government incentives, such as the FAME-II scheme offering subsidies up to Rs 1.5 lakh for EVs, further enhance the attractiveness of electric vehicles in metros, especially with soaring petrol prices exceeding Rs100/litre in major cities.

On the other hand, non-metros are witnessing a growing interest in EVs. 73 per cent of non-metro respondents are aware of EVs, signalling increasing awareness in these regions. The entry of budget friendly EV models like Rage+ and Stream City has made electric vehicles more affordable contributing to the surge in demand from non-metros. Additionally, the availability of ample parking space in non-metros addresses home charging concerns, providing a significant advantage for EV ownership.

Government initiatives, such as the PPP model for charging infrastructure, are focused on bridging the charging infrastructure gap in non-metros, thereby fuelling future demand. Despite initial EV adoption being dominated by metro sales, reports suggest a notable shift, with non-metro EV sales growing 226 per cent YoY in FY23 compared to 187 per cent in metros. This indicates a faster adoption rate in non-metro areas. In Q3 2023, the EV sales share in non-metros crossed 20 per cent, showcasing the increasing contribution of these regions to the overall EV market.

However, key challenges persist. While metros enjoy an advantage in charging infrastructure, non-metros require substantial expansion to sustain the growing demand. Range anxiety, particularly due to the limitations of some EVs, might dissuade non metro buyers with longer travel distances. To address these challenges, a broader education and awareness campaign about EVs and their benefits are crucial for fostering greater adoption in non-metro areas and ensuring the sustained growth of the EV market across the country.

What is your strategy for expanding the market for electric vehicles, both domestically and internationally?

Our strategic approach to expanding the market for electric vehicles (EVs) encompasses both domestic and international fronts. Domestically, our focus is on penetrating Tier 2, 3, and 4 cities, ensuring a presence in each of the 750 districts across the country. To achieve this, we are planning to establish retail stores and service stations strategically, catering to the unique needs of diverse urban and rural landscapes.

An integral part of our domestic expansion strategy is the development of charging infrastructure. Recognising the critical role of charging networks in the widespread adoption of EVs, we are actively collaborating with partners nationwide to facilitate the establishment of an extensive and accessible charging infrastructure. This emphasis on charging infrastructure is particularly crucial for addressing the specific needs of small towns, rural locations, and various tier cities.

Internationally, we are actively engaged in developing products and alliances to enter key markets in Europe, Africa, the Middle East, ASEAN, and Latin America. Our global strategy involves identifying market segments with significant potential for EV adoption and establishing alliances that facilitate market entry and growth.

In terms of market segments, our expansion plans cover a wide range of electric vehicles, including 2-wheelers, 3-wheelers, and 4-wheelers. While we have been prominent in the commercial segment, our focus is now extending to passenger three-wheelers, two wheelers, and electric trucks. This diversification aims to address the varied transportation needs of different customer segments.

In the international arena, our key markets include Africa, ASEAN countries (such as Vietnam, Philippines, Indonesia), and Latin America. These regions present significant opportunities for the adoption of electric mobility, and our strategic approach involves tailoring our offerings to suit the specific requirements of each market.

Simultaneously, our foray into both Business-toBusiness (B2B) and Business-to-Consumer (B2C) segments is a deliberate move to ensure comprehensive market coverage. In the B2B space, we are exploring opportunities to provide electric vehicles for commercial purposes, such as cargo and logistics. Meanwhile, our focus on the B2C segment involves creating a strong retail presence and service network to cater to individual customers in various markets.

Our vision extends beyond the domestic landscape, and we anticipate that by the year 2026 and FY27, a substantial 35 per cent of our market share will be international. To achieve this, we have actively forged strategic alliances in key regions such as Bangladesh, Vietnam, Europe, the Middle East, and Africa. Embracing a "think global, act local" philosophy, we are dedicated to tailoring our products and strategies to meet the specific demands of diverse international markets.

Our commitment to global expansion is underscored by our relentless efforts to build alliances worldwide. Recognising the importance of understanding local dynamics, we are collaborating with major global players to gain insights into market nuances and adapt our products accordingly. This approach ensures that our electric vehicles align seamlessly with the preferences and requirements of each market, fostering greater acceptance and success.

At the heart of our international strategy is a proactive stance toward innovation. Renowned for our leadership in adopting new technologies, we strive to stay at the forefront of the industry. By working closely with global partners, we not only gain valuable insights into emerging trends but also incorporate cuttingedge advancements into our product offerings. This collaborative and forward-thinking approach positions us as a trailblazer in the global electric mobility arena.

 In essence, our international expansion strategy revolves around strategic alliances, market understanding, and a commitment to technological leadership. As we continue to build a strong global presence, our goal is to be at the forefront of shaping the future of sustainable and eco-friendly transportation on a global scale.

We have heard that OSM is aiming to touch Rs 500 crore revenue by the end of this fiscal. How is your company endeavouring to achieve this revenue goal? Also, what is your revenue target for the next financial year?

This financial year, our focus and dedication are poised to propel Omega Seiki Mobility (OSM) across the Rs 275 crore revenue mark. Looking ahead to the next fiscal year (FY24-25), we are charting a course to achieve an even more ambitious target crossing Rs 500 crore in revenue. Our strategic efforts are particularly pronounced in the passenger segment, where we are witnessing significant developments.

Notably, both our passenger three-wheelers and trucks have secured ARAI approvals in every state across the country. This accomplishment signifies a critical milestone as we prepare to introduce our products to a broader market. With all necessary approvals in place, we are set to unveil a comprehensive range of variants across our product line-up. A significant advancement in our offerings is the introduction of a 15-minute fast charging product. This innovation holds the potential to revolutionise mobility, not only for passengers but also for our trucks. The rapid charging capability is a game-changer that aligns with our commitment to advancing the electric mobility landscape. In summary, our revenue target of Rs 500 crore for the next financial year reflects our confidence in the market, the strength of our product portfolio, and the transformative impact of innovations such as 15-minute fast charging. As we continue to push boundaries and redefine the electric mobility sector, OSM is poised for substantial growth and contribution to the sustainable transportation revolution in India.

In FY2023, OSM sold about 5,100 electric threewheelers in FY2023 and intends to sell about 25,000 units, including 13,000 electric passenger 3Ws and 12,000 electric cargo 3Ws in FY24. How are you gearing up to meet these aspiring sales targets?

Omega Seiki Mobility (OSM) has set sales targets for FY2024, aiming to sell approximately 25,000 electric three-wheelers, including 13,000 electric passenger three-wheelers and 12,000 electric cargo three-wheelers. To meet these aspirations, we are strategically aligning our efforts across various facets of our business.

In terms of product and market strategy, OSM plans to expand its product portfolio by developing new electric models that cater to diverse customer needs, such as different ranges, payload capacities, and passenger configurations, along with the introduction of new technologies like hydrogen-powered threewheelers. Additionally, we aim to forge partnerships with established companies in the logistics, e-commerce, or passenger transportation sectors to secure bulk orders and expand our market reach.

In the production and supply chain domain, OSM is gearing up by investing in scaling up its production capacity at existing facilities and establishing new manufacturing plants, including a plant to produce electric trucks and a plant in Tamil Nadu for our hydrogen-powered three-wheelers, to meet the expected surge in demand.

OSM's sales and distribution network will undergo expansion with the appointment of new dealers in strategic locations, particularly in Tier 2 and Tier 3 cities where there is a growing demand for electric mobility solutions. We will also invest in digital sales channels, developing robust online platforms and leveraging e-commerce channels to reach a wider customer base. Additionally, OSM is providing attractive financing options by partnering with financial institutions to offer competitive loan schemes and easy financing options for potential buyers.

Customer service and support will be a focal point for OSM, involving the establishment of a widespread service network, like our COCO (Company Owned Company Operated) Service Centre, with trained technicians to ensure prompt after-sales service and effective resolution of customer concerns.

Addressing additional considerations, OSM will collaborate with stakeholders to improve charging infrastructure, particularly in non-metropolitan areas, to alleviate range anxiety concerns.

What amount of investment have you made towards EV manufacturing, R&D, hardware, and software development? Are there further plans to increase it?

Our commitment to electric vehicle (EV) manufacturing, research and development (R&D), as well as hardware and software development, is underscored by a substantial investment of approximately $50 million. This investment reflects our dedication to advancing technology, enhancing product offerings, and contributing to the evolution of the electric mobility sector in India.

Looking ahead, we have ambitious plans to further accelerate our growth trajectory. In the next two years, we are gearing up to make a significant additional investment, intending to reach a total investment of $100 million. This expanded financial commitment is strategically aligned with our vision for innovation, sustainability, and leadership in the rapidly evolving landscape of EV manufacturing.

Our continuous investment in EV technologies, R&D, and infrastructure is a testament to our confidence in the potential of electric mobility and our commitment to being at the forefront of transformative developments in the industry. As we expand our investment portfolio, we aim to play a pivotal role in shaping the future of sustainable transportation in India and beyond.

Elaborate in detail about OSM' strategies for localised EV manufacturing and value chain networks, specifically in terms of parts and component network?

Omega Seiki Mobility is deeply committed to localised electric vehicle manufacturing and has strategically positioned itself as a backwards integrated company. The emphasis on "Make in India" reflects our dedication to contributing to the domestic manufacturing ecosystem and ensuring competitive pricing in the price-conscious Indian market.

One crucial aspect of OSM's localised manufacturing strategy involves battery cell manufacturing. To achieve this, OSM has established ties with a USA-based company, C4V, to facilitate battery cell manufacturing in India. This strategic partnership enables OSM to secure a local source for critical components, reducing dependency on imports and contributing to the growth of the Indian battery manufacturing industry.

Additionally, OSM has forged a partnership with the Korean Tech giant, Jae Sung Tech Pvt Ltd, for the manufacturing of Powertrains in India. The Powertrain is a critical component of electric vehicles, encompassing the motor, transmission, and other key elements that drive the vehicle's propulsion. By localising the production of Powertrains, OSM ensures greater control over the supply chain and enhances the efficiency of its manufacturing processes.

Furthermore, OSM's commitment to localisation extends to various other components and parts of our electric vehicles. The hardware and motors used in OSM's products are proudly labelled as "Made in India." These components are sourced from different companies under the Anglian Omega Group, reinforcing OSM's integration into the Indian manufacturing ecosystem.

By localising the manufacturing of crucial components such as battery cells and Powertrains, and by sourcing various parts and components from within India, OSM not only ensures cost-effectiveness but also contributes to the development of a robust and self-reliant electric vehicle value chain network in the country. This localised approach aligns with the larger national agenda of fostering indigenous manufacturing capabilities and reducing dependence on imports, thereby fortifying OSM's position as a key player in the Indian electric mobility sector.

How do you plan to address the issue of limited charging infrastructure in India? Do you have partnerships with charging station providers, and how are you facilitating ease of charging for your customers?

Addressing the limited charging infrastructure in India is a core focus for Omega Seiki Mobility (OSM), and we are actively contributing to its expansion. One notable initiative is the installation of our first EV charger at the campus of Indira Gandhi Delhi Technical Universities for Women in New Delhi through OSM e-link. This step exemplifies our commitment to nurturing the growth of EV infrastructure in the capital and serves as a model for similar installations in educational institutions. In our collaborations, especially with partners involved in battery technology and related areas, we place a strong emphasis on infrastructure development. Our contracts explicitly stipulate the necessity for partners to actively participate in building the required charging infrastructure. Encouragingly, our partners have demonstrated impressive progress, rapidly increasing the number of charging stations from 150 to approximately 300 in a short period.

To further contribute to the development of charging infrastructure, OSM is actively engaged in partnerships with charging station providers. These collaborations are instrumental in expanding the network of charging stations across various locations. Our strategic focus extends beyond metropolitan areas, with a primary emphasis on Tier 2, 3, and 4 cities. Recognising the vital role these cities play in the overall accessibility and success of electric mobility, we are dedicated to making sustainable transportation options readily available to diverse urban landscapes in India.

Facilitating ease of charging for our customers is a key consideration in our approach. By actively participating in the development and expansion of the charging infrastructure, we aim to provide convenient and accessible charging options for EV users. This holistic strategy aligns with our vision to contribute to the creation of a robust and supportive ecosystem for electric mobility in India.

The supply chain for EVs in India is still developing, which can make it difficult for manufacturers to source the components they need to build EVs. How are you tackling this issue?

To address the challenges posed by the developing supply chain for electric vehicles in India, Omega Seiki Mobility has implemented a comprehensive strategy centered around localised manufacturing and strategic partnerships. Recognising the nascent state of the EV supply chain in the country, OSM has strategically positioned itself as a backwards integrated company, emphasising the "Make in India" initiative.

A critical aspect of OSM's approach involves battery cell manufacturing. OSM has established a strategic partnership with C4V, a USA-based company, to facilitate battery cell manufacturing in India. This collaboration allows OSM to secure a local source for crucial components, particularly batteries, mitigating reliance on imports and contributing to the development of the Indian battery manufacturing industry. By localising this essential component, OSM enhances its control over the supply chain and reduces vulnerability to global market fluctuations.

In addition to battery cells, OSM has partnered with Jae Sung Tech Pvt Ltd, a Korean Tech giant, for the in-house manufacturing of Powertrains in India. The Powertrain, encompassing the motor, transmission, and other key elements, is a vital component in the propulsion system of electric vehicles. By localising the production of Powertrains, OSM not only ensures a secure supply chain but also enhances the overall efficiency of its manufacturing processes.

OSM's commitment to localisation extends across various components and parts used in its electric vehicles. The hardware and motors employed in OSM's products proudly carry the label "Made in India." These components are sourced from different companies within the Anglian Omega Group, further solidifying OSM's integration into the Indian manufacturing ecosystem.

By actively engaging in localised manufacturing and establishing strategic partnerships for critical components, OSM navigates the challenges posed by the evolving supply chain for EVs in India. This approach not only ensures a more secure and resilient supply chain but also aligns with OSM's commitment to contributing to the growth and self-reliance of the Indian electric vehicle industry.

There is limited pool of skilled workers in India with expertise in areas such as EV manufacturing, battery technology, power electronics, and software development. How can this gap be filled?

The scarcity of skilled workers in key areas such as electric vehicle (EV) manufacturing, battery technology, power electronics, and software development presents a notable challenge for the growth of India's EV sector. To counter this, a multifaceted approach is essential.

Government initiatives should include the allocation of dedicated funds for EV-specific skill development programs under the National Skill Development Mission (NSDM) and strengthening the role of the Skill Development Council for Electric Vehicles (SDEEV). Encouraging apprenticeship programs linked to the industry and promoting collaboration between academia and the EV sector through apprenticeships are critical steps.

In parallel, industry-driven efforts are crucial, including upskilling and reskilling programs for the existing automotive workforce, partnerships with academic institutions, and incentives like scholarships to attract talent. Individuals can contribute by utilising online learning platforms, engaging in self-directed learning, and participating in industry networking events.

A collaborative approach, involving effective public-private partnerships, a focus on quality and standardisation in training programs, and continuous evaluation with feedback mechanisms, is imperative. By embracing these initiatives, India can cultivate a skilled workforce equipped to propel the EV industry forward, contributing to sustainable growth and innovation in the sector.

comments powered by Disqus