Greaves Cotton Ltd is positioning itself for a recovery in its electric vehicle (EV) sector through strategic changes, including an overhaul of its EV dealer network and the expected inclusion of its electric two-wheelers in the Electric Mobility Promotion Scheme (EMPS) for subsidies.
In the first quarter of FY25, the company’s Ampere-branded electric two-wheeler sales rose by 10% to 9,811 units, while electric three-wheeler volumes grew by 19% to 3,074 units. Greaves remains one of the top five players in the electric two-wheeler market, holding a 3.4% market share.
During the Q1FY25 earnings call, K Vijaya Kumar, Executive Director & CEO of Greaves Electric Mobility Pvt Ltd (GEMPL), confirmed that the Ministry of Heavy Industries (MHI) has approved Ampere-branded two-wheelers for EMPS registration, with the company nearing the final stage of the certification process.
Earlier, GEMPL faced scrutiny from MHI over FAME-II subsidy compliance and was issued show-cause notices. The company refunded ₹124.91 crore in incentives and ₹15.07 crore in interest without admitting fault, and is now awaiting re-certification for FAME subsidies.
In response to growing demand in the electric three-wheeler market, GEMPL has introduced the Eltra City, an electric three-wheeler priced at ₹3.7 lakh, which qualifies for MHI subsidies. The company’s electric three-wheelers, including the Eltra City Passenger and Eltra Cargo, are also eligible for these subsidies.
GEMPL expanded its network by adding approximately 30 touchpoints in the electric three-wheeler segment during the June 2024 quarter, enhancing its geographical reach and dealer relationships. The company has addressed MHI’s concerns, refined its product lineup, and improved process efficiencies over recent quarters.
As part of its strategy, Greaves is reorganizing its distribution network, centralizing customer service, and managing complaints from a central office. These measures have led to a 95% reduction in customer complaints in the June quarter, improving response times significantly. “This strategy has been crucial in improving our response times to both customers and dealers, as evidenced by our growth in the first quarter,” Kumar noted.
Akila Balachandar, CFO of Greaves Cotton Ltd, underscored that the EV business is a long-term commitment, with management optimistic about future growth. She emphasized the company’s dedication to expanding its product range, enhancing internal efficiencies, and achieving profitability. For FY24, Greaves Electric Mobility Pvt Ltd reported total revenue of ₹466.35 crore and a loss of ₹641.56 crore, compared to revenue of ₹1,092.35 crore and a profit of ₹6.55 crore in the previous fiscal year.
