In an interview with Nitisha from EFY, Ravi Mahankali of Axonify Tech Systems, outlines the company’s EV charging solutions, covering chargers for four-wheelers, buses, and select two- and three-wheelers, while addressing key challenges in the EV industry.
Q. What services and products does Axonify provide?
A. Axonify, founded in 2019, specialises in providing EV charging solutions. We design and manufacture EV chargers for various vehicles, including cars, buses, and some two- and three-wheelers. We focus on developing charging infrastructure to meet the growing needs of the electric vehicle population. We produce all our chargers at our state-of-the-art manufacturing facility in Hyderabad.
Q. What are the main categories of Axonify’s EV chargers?
A. There are two main categories of EV chargers: slow chargers and DC fast chargers. Slow chargers are typically installed in homes or apartments. They take about five to six hours to charge a standard car, offering a power range of around 7 kilowatts, which is compatible with residential electrical supply. This makes it easy for regular households to install and use them, as they can be connected overnight, providing a fully charged vehicle by morning. The second category is DC fast chargers, designed primarily for commercial locations such as highways, restaurants, malls, and office buildings. For example, we supply these chargers to several CPOs and companies such as HPCL who are establishing a network of charging stations. DC fast chargers are larger units that charge vehicles in just 30 to 40 minutes.
Q. What makes your chargers unique compared to others?
A. Our chargers are unique due to our in-house R&D and manufacturing capabilities, allowing us to quickly customise and deliver products based on customer needs. This flexibility and responsiveness set us apart.
Q. How do you serve your customers regarding EV chargers and charging stations?
A. We manufacture EV chargers. Our customers use these chargers to build charging stations. Additionally, we set up our own charging stations at strategic locations to serve customers directly.
Q. How do you select optimal locations for EV charging stations?
A. Great question! Selecting the ideal locations for charging stations is crucial, as it requires an analysis of traffic flow and the number of electric vehicles in the area. Currently, highways are the optimal sites for building charging stations. We are targeting specific highways, such as the route from Hyderabad to Vijayawada. Our customers focus on these highways, and we assist them in choosing the right products, offering an end-to-end solution. We support our customers from transformer selection to installation, providing a comprehensive service every step of the way.
Q. What are the benefits of DC fast chargers for businesses?
A. For individual electric vehicle owners, a regular home charger or wall box is usually sufficient. However, if you are considering starting an EV charging station business, DC fast chargers are the way to go for faster ROI. These chargers start at 30 kilowatts and can go up to 60, 120, or even 240 kilowatts for buses. At these power levels, the existing transformer at a building or restaurant may not be able to handle the extra load. Therefore, an upgrade or an additional transformer may be necessary. We can assist with this process as we understand the specific requirements and procedures for each state. Additionally, we are knowledgeable about the various EV policies and benefits offered by different states; for example, states such as Maharashtra and Telangana offer lower power tariffs for EV charging stations.
Q. Who are your target audience?
A. We have two primary target audiences for EV charging solutions. The first category is individual EV owners. Some vehicles, like those from MG Motors, come with chargers that we supply, which are included with the car. The second category consists of people who want to establish a business related to charging infrastructure. This could involve setting up a new location or adding chargers to an existing business, such as a restaurant or mall, to attract EV owners and increase footfall to their business.
Q. What is the revenue model for DC fast charger stations?
A. Charge point operators (CPOs) install charging stations in several locations, for example, along highways and public parking areas. These operators generate revenue by charging EV owners a per-unit fee for electricity used during vehicle charging. To give you an example, charging a Tata Nexon may require about 35 units of electricity. If the CPO charges `20 per unit, and the cost from the electricity board is `10 per unit, the CPO earns revenue from the difference.
Q. Can you tell me about the location and setup of your manufacturing facility?
A. Our manufacturing facility is in Hyderabad, near the airport. This facility is equipped with state-of-the-art machines and employs a dedicated team of professionals. The facility is designed to handle the production and thorough testing of our chargers. Every charger that comes out of the production line goes through electrical safety tests, load tests, and thorough functional checks.
Q. What types of machines do you have in your facility?
A. We have built specialised vehicle simulators to test our chargers without needing actual vehicles on the production line. These simulators allow us to test every charger we produce efficiently.
Q. What kind of testing do your charging stations undergo?
A. We conduct rigorous testing on our charging stations to ensure reliability and durability. This includes electrical, mechanical, and rain testing to meet IP54 or IP55 ratings. We also perform load testing to ensure the chargers can handle loads from 10% to 110%, ensuring they are rugged and defect-free.
Q. Which components are sourced locally, and which are outsourced?
A. We strive to source 80% to 90% of our components locally for most product lines. Local content is around 55% to 60% for larger fast chargers. We aim to increase localisation to at least 82% to 90% across all products. However, high-resolution displays and other specialised components are sourced internationally due to the lack of local manufacturing.
Q. Is sourcing a challenge for your company?
A. Sourcing can be challenging, especially for components that need to be procured internationally. The supply chain process is more complex and time-consuming compared to local sourcing. We mitigate this by developing in-house solutions and establishing a reliable vendor base.
Q. What challenges does the EV industry currently face?
A. Early challenges included multiple charging standards, but the market has converged on the European CCS2 standard. While government incentives like FAME-I and FAME-II have helped grow the EV population, improving charging infrastructure to address range anxiety remains a significant challenge.
Q. Can you explain the CCS standard in detail?
A. CCS stands for combined charging system, which supports slow and fast charging in a single connector. The top part of the connector is for slow charging, while the bottom is for high-power fast charging.
Q. How can the perception of electric vehicles be improved?
A. The economics of EV ownership are already favourable, with operating expenses significantly lower than those of petrol vehicles. Public awareness of these benefits is growing, reducing the need for extensive convincing. However, ‘range anxiety’ is a concern for potential buyers. Having a reliable and extensive charging infrastructure is key for EV adoption.
Q. How does the EV industry in India compare to the US?
A. I lived in the US for several years before moving to India to start Axonify along with Mr. Amarpal Gampa. I have had the good fortune of watching the EV revolution unfold twice (in the US and now in India). While the US had an early start in the EV industry, India’s market, particularly for two-wheelers, is growing rapidly. Policy differences include more subsidies for charging stations in the US, which India could benefit from by adopting similar incentives and policies.
Q. Which states do you cater to, and how many chargers have you sold?
A. We cater to almost every state in India, including Maharashtra, Gujarat, and Kerala. Since starting production in 2021, we have sold around 4000 chargers.
Q. How do you reach your customers?
A. We use direct marketing, online sales, and participate in government tenders. We are also setting up our franchisee/dealer network.
Q. Do you have any new product announcements or partnerships?
A. We recently received certification for our high-power 240kW charger from ARAI and will start production soon. We designed this product with the demanding needs of bus charging applications in mind.
Q. Are there any government initiatives you would like to see?
A. While the Indian government has been supportive, we would like to see more direct incentives for charging stations in addition to vehicle subsidies.
Q. What is your monthly capacity for different chargers?
A. We offer different charger models. For smaller wall boxes, we produce 500 to 1000 units monthly. For fast chargers, our capacity ranges from 50 to 100 units per month.
Q. What is your annual growth rate for sales?
A. We are experiencing annual growth of around 30% to 40%. In product sales, year-on-year growth is at least 40% to 50%.
