Omega Seiki Mobility (OSM) will set up the world’s largest electric three-wheeler manufacturing unit in the state of Karnataka with an investment of $250 million. The new facility will be built in three phases and will have a production capacity of 1 million electric three-wheelers per year.
The company will raise funds in the form of equity as well as debt to build the OSM mega-factory which is expected to begin production by FY24.
The new facility will be complemented by its own powertrain and battery supply chain. OSM is also in active negotiation with existing suppliers as well as new suppliers for the establishment of ancillary manufacturing facilities near the OSM mega-factory which will be built on an area of 250 acres.
The new manufacturing facility will produce a full line of Omega Seiki Mobility three-wheel electric vehicles, including Rage+, Rage+ RapidEV, Rage+ Frost, Rage+ Swap and Rage+ Tipper. Additionally, the new plant will also manufacture the upcoming OSM Stream, which will be a three-wheeled electric passenger transporter.
Speaking on the OSM mega-factory, Uday Narang, President and Founder of OSM, said, “The organized market for electric three-wheelers grew exponentially by 200% in FY22 compared to the previous year. This has helped 3-wheel EVs now command 46% of total three-wheeler volume. »
He added, “At OSM, we believe that the adoption of EVs in the last mile delivery sector and government bodies will help India become the first market in the world where every 3 three-wheeled EVs will be sold for 1 three-wheeled ICE. We want to be the market leader in the three-wheeler market, not just in India but globally and the new 1 million unit capacity OSM mega-factory is the first step towards that goal.
The electric three-wheeler segment is a mature segment of the market in the ASEAN region. In recent years, this market has grown exponentially, mainly driven by e-commerce companies for their last mile needs, supported by the economics of electric vehicles compared to diesel and CNG vehicles.
After a successful entry into India, Omega Seiki Mobility plans to enter international markets. The company has already set up JVs in Bangladesh, Egypt and the United Arab Emirates.
“We are on the cusp of a major electric vehicle revolution with our range of products that have not only been made in India but also developed in the country with the harsh weather conditions in mind. Today, I am proud to say that OSM products are not only used in urban and rural towns, but also in small towns, whether in the harsh winters of the Himalayas or the sweltering heat of Rajasthan,” Narang added. .
Dr. Deb Mukherji, Managing Director of Omega Seiki Mobility, said: “OSM is a global brand and the new OSM mega-factory will cater to the Indian markets as well as those in ASEAN, Africa and from the Middle-East. Today, OSM is the first electric vehicle company to export Made in India three-wheelers to these geographies.
“We will also set up manufacturing in these countries with our local partners. OSM has also focused on integrating its product portfolio and is the only company in India to offer three power supply options: long range, fast charge and swappable. added, Dr. Deb Mukherji
The three-wheel electric cargo segment is the backbone of India’s last-mile mobility ecosystem. These vehicles provide affordable transportation solutions across large parts of the country, helping to improve the bottom line for logistics players at a time when gasoline, diesel and CNG prices are at an all-time high.
OSM currently has an order book of over 50,000 units. The company currently operates its fleet in 20 cities, covering more than 10 lakh Km per month. Omega Seiki Mobility is working closely with partners to overcome supply chain disruptions plaguing the automotive industry.
To achieve large-scale production of electric vehicles, the company has set up joint ventures with Korean company Jae Sung Tech to manufacture a new line of powertrains. Omega Seiki Mobility also plans to manufacture motors and batteries in-house.
“We can only manufacture 1 million vehicles if we have our own engines, powertrains and batteries. We are striving to become a fully integrated company in India to have control over the supply chain dynamics of these critical parts entirely under our control,” added Dr. Mukherji.