The companies are targeting manufacturing of electric motors this year initially in their Punjab-based plant. They will be in three different sizes One size is suitable for E2Ws and E3Ws, the second is for passenger e-trucks, and mid-range motors, and the third will be heavier motors for buses and trucks.
“The idea is to develop these platforms, get them ready for production and also start manufacturing and procuring motors for Evage, which is an immediate customer with this JV. And then we'll explore how to sell to potential people who want one of these three forms within India,” Inderveer Singh, EVage founder and CEO told ETAuto.
The joint venture comes in 60-40 ratio, where 60% is owned by DG Innovate and 40% by Evage Motors. The motor will be entirely manufactured in India, though it may need to import specific components that aren't currently produced in the country.
DGI and EVage will manufacture the motor in EVage’s Modular Miniature Manufacturing (Mcube) micro factory, which already supports India’s first native commercial EV platform. The factory currently produces over one electric truck a day, for a total of more than 300 to date. Those trucks are servicing top FMCG, e-commerce and logistics companies throughout India, with top clients including Amazon.
Future plans
Both the CEOs aim for India as their current target market. Ex-Tesla member, Peter Bardenfleth-Hansen, CEO of DGI , said, “With the right investments, India will become a global leader in this and for DGI, this is the right place to be, main purpose of DGI taking this JV is that we can see that the market opportunity here”.
Talking about the capex investment required for the joint venture, Hansen said, Both the companies are planning to invest EUR 2 million to 5 million in the coming years for its escalation. “It will be very much customer demand-driven.”
Hnasen added, the e-motor is going to be “60-70% smaller than a similar motor from a competitor… thus reducing its weight with the same output and higher efficiency rates.. It also leads to reduced cost.”
Export plans of the company
“I believe that we are specifically at this point focusing on domestic customers,” said Singh. Together, the companies will target the Asian EV market first, which offers more efficient electric trucks, resulting in longer life and a reduced cost of ownership for fleet owners, with an average range increase of 5-7% on the same charge.
However, both of them aim to target the European market whenever they plan exports. Singh further said, “It is a long testing and validation phase that the customers take. So even if we were to supply a motor this year, it would take 12 to 18 months for them to validate the motor and put it on their vehicles (European market).
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