Gensol Engineering to buy US-based EV startup, plans to launch affordable e-car with 200km range in India

Gensol aims to set up its R&D center for technology development and a start of production (SOP) in the first quarter of 2023 in Pune, India with a capacity of 12000 cars per year in the first phase. The company is also hiring a team of more than 150 automobile engineers and designers for this venture.

Gensol Engineering to buy US-based EV startup, plans to launch affordable e-car with 200km range in India

Gensol Engineering signed a term sheet to pick up majority stake in a US-based electric vehicle manufacturing startup. The investment is intended to accelerate Gensol’s plan to deliver a robust domestically manufactured EV in India. With this deal, Gensol foresees an increment in revenue by Rs 500-600 crore for FY 2024.

At present, Gensol Engineering part of Gensol group of companies, offers EPC and solar advisory services.

The company aims to set up its R&D center for technology development and a start of production (SOP) in the first quarter of 2023 in Pune, India with a capacity of 12,000 cars per year in the first phase. A team of more than 150 automobile engineers and designers are planned to be hired for this venture.

It aims to take this EV market to the next level of technological advancement and serve a wide variety of the customers’ mobility needs – passenger, fleet, and cargo – with different designs. These domestically produced ‘Make in India’ vehicles will deliver a cruising range of around 200km per charge and can be fully charged in just two hours.

Anmol Singh Jaggi, MD, Gensol said “Hatchbacks form 46 per cent of the cars sold in India and the total market size of EV hatchbacks is $9 billion (Rs 70,983 crore). The Indian EV car segment is set to grow at 105 per cent till 2030 reaching 2,00,000 annual sales volume. We propose to invest in this US-based EV startup with a very positive outlook to serve India’s need for affordable and efficient EVs. With the rising fuel prices, our vision is to provide a solution that reduces fuels costs by 5 times. This is another milestone on our journey to make deeper cuts in carbon emissions and higher employment generation. The government push along with the ever-increasing demand has motivated us to set up the production of EVs in India. We shall disclose the details about our electric car very soon’’

Importantly, India is committed to a climate-motivated push to traverse its difficult path of decarbonisation. Therefore, EV is one of the front-runners for government action, as mass consumer transport electrification is not only a necessary path to net zero but also can significantly boost national economies. Keeping in mind that the transport sector is one of the largest sources of greenhouse gas (GHG) emissions, so its progress will be pivotal for facing the formidable climate change challenge.

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