scorecardresearch

Volvo Eicher JV floats separate electric arm, VE Electro Mobility

Volvo Eicher JV floats separate electric arm, VE Electro Mobility According to experts, more and more traditional companies are taking the subsidiary route to building their electric vehicle business. The primary reason behind this is to diversify the risk and get investors on board for the business.

Eicher e-bus

In sync with the growing trend, the joint venture company between Eicher Motors and Volvo, Volvo Eicher Commercial Vehicles has floated a separate subsidiary to manufacture, sell and operate electric buses. According to a senior official, the subsidiary is named VE Electric Mobility. 

Akshay Passey, President, Volvo Eicher Commercial Vehicles responding to Express Mobility’s query on forming a separate subsidiary for electric buses responded “We have a subsidiary for electric buses named as VE Electric Mobility.” 

According to experts, more and more traditional companies are taking the subsidiary route to building their electric vehicle business. The primary reason behind this is to diversify the risk and get investors on board for the business.

So far companies like Tata Motors and Mahindra & Mahindra have been able to raise money for the electric vehicle business. Moreover, traditional companies such as TVS and Bajaj has also formed separate subsidiary to manufacture and sell electric vehicles.

VECV recently participated in a tender floated by Convergence Energy Services, a subsidiary of state-run Energy Efficiency Services. It has bagged an order to supply 150 e-buses in Surat. 

What’s important to note is that VECV was amongst the first players to have introduced and piloted a zero-emission electric bus in India, way back in February 2018. At that time, VE Commercial Vehicles had integrated KPIT Technologies’ indigenously developed electrification technology, ‘Revolo’, on its bus platform – ‘Skyline Pro’. The pilot saw three Eicher Skyline Pro E buses operating with West Bengal Housing Infrastructure Development Corporation (WBHIDCO) operating seven days a week, covering 140km per day and delivering 98% uptime for over a year.

 At present, unlike the IC-bus segment, the Indian electric bus segment is seeing fierce competition between global and Indian players like – Olectra, Foton PMI, Tata Motors, Ashok Leyland, Mahindra & Mahindra and VE Commercial Vehicles.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Most Read In Electric Vehicles