The company had picked up pace regarding month-on-month registrations for high-speed electric two-wheelers (E2Ws) during the end of last year. However, that progress seems to have derailed after the FAME 2 fiasco.
Noida-based AMO Mobility’s high-electric speed two-wheelers will soon be available in India with FAME II incentives, revealed Sushant Kumar, MD, AMO Electric Bikes, in a conversation with Electronics B2B.
He said, “We will dispatch at least 40,000 electric scooters to our dealer network before the end of this fiscal.” He is hopeful that around 80% of these will convert into end-consumer sales.
The company had picked up pace regarding month-on-month registrations for high-speed electric two-wheelers (E2Ws) during the end of last year. However, that progress seems to have derailed after the FAME 2 fiasco. Several reports had mentioned AMO Mobility’s name on the list of E2W brands for which the Ministry of Heavy Industries has stopped subsidies.
Not only were these brands delisted from the FAME 2 portal, but it is also being reported that MHI has asked these to pay back the subsidies they were provided earlier.
Targeting To Increase Institutional Sales
The company’s prime focus is on increasing institutional sales (B2B). Kumar shared that while the contribution of B2B sales to AMO’s overall revenues is in single digits at the moment, the company is targeting to increase it to over 15% by the end of the first half of the next fiscal year.
“We are in advanced talks with several fleet operators and other companies for deploying our products in last-mile logistics and transportation space,” he said.
Expecting that the new policy structures (Central and state) will accommodate special incentives for deploying EVs in logistics, he foresees a bright future for the E2W makers in India. Several parts of India, including Delhi, have banned the use of internal combustion engine-powered two-wheelers as commercial vehicles. These were primarily operating under the banner of several cab-aggregator app services.
Also Read: Why Is MHI Asking For More FAME II Funds, Asks SMEV
Additionally, the last-mile logistics sector has become India’s primary adopter of E2Ws. The logistics sector has become the primary adopter of E2Ws in India. It is estimated that adoption of E2Ws in this sector will increase multifold.
“I think e-commerce deliveries will be a big adopter of AMO E2Ws,” he said. The company had signed an agreement to retail 10,000 E2Ws to Trigo Electric earlier this year.
Increasing Dealerships From 250
Apart from high-speed E2Ws, the company has also been retailing slow-speed E2Ws in India since 2018, and it says it has sold over 60,000 so far. Aiming to increase the number of dealerships from 250 to 325 before the end of this fiscal year, Kumar is neutral about the finance options available for E2Ws in India.
“Finance was a challenge, but things have improved in India. As this is a new ecosystem, it will take some time to mature. There is always some scope for improvement. I think it will be fine in the coming times,” he said.
The E2W market, to be able to achieve what is envisioned, will need to build a robust supply chain for components “locally”. “As an OEM, we need more credible suppliers. This is where EVs are struggling. Either there are limitations due to the regulations or the availability of components,” he said.
AMO says it has been profitable with a healthy top and bottom line from its first year. It says its business grew 339% year-on-year in FY21 and 47% in FY22. Its facility can manufacture 10,000 E2Ws per month.
