“A pivot from tradition to transformation,” says Namit Jain of Zen Mobility, in an interaction with EFY in MOVES Ecosystem Dialogues. From the influence of German innovation to tackling India’s unique market challenges, discover how Zen Mobility is shaping the future of logistics with its bespoke electric solutions.
Q. Can you share why Zen Mobility chose to transition towards manufacturing electric vehicles, especially for the B2B sector?
A. Our journey at Zen Mobility is a continuation of our group’s 40-year legacy in auto components manufacturing. About four or five years ago, we recognised the shift towards EVs and green energy. My studies in Germany, focusing on the EV logistics sector, deeply influenced our strategic pivot. We saw a clear opportunity in the logistics sector upon my return to India, which led to the launch of our EV initiatives targeting this niche.
Q. What specifically about your studies in Germany sparked this interest?
A. While studying in Germany, I observed how companies like DHL were innovating with EVs in logistics. The sector was ripe for transformation yet still nascent. Recognising this potential, we were motivated to develop a solution that could be successful not just in Europe but also back home in India.
Q. Zen Mobility has recently introduced innovative products adopted by Zomato. Could you discuss the versatility of these designs?
A. The EV, and specifically the three-wheeler industry, had always lagged in incorporating engineering and design technology. My passion and experience in this area led us to adopt a solution-oriented approach rather than just creating products for specific needs. We embraced design thinking, starting with understanding customer pain points to develop versatile solutions across multiple sectors, such as e-commerce, 3PL, and both cold and hot storage. The last-mile delivery challenge in India is significant, marked by high costs and a lack of suitable vehicles. Options were limited to either unsafe, overloaded two-wheelers or oversized vans. Recognising this gap, we aimed to develop a more appropriate solution tailored for various last-mile services, including food and grocery delivery. This required extensive R&D, which was previously lacking in the industry. After four years of dedicated design, development, and testing, we launched our product with all the necessary patents to protect our innovative designs and technologies. This approach not only addresses immediate needs but also sets a new standard in the industry.
Q. Despite the popularity of passenger transport in the three-wheeler segment, why focus on cargo?
A. Our decision to develop cargo electric three-wheelers wasn’t based on entering any specific vehicle category but rather on addressing a specific logistical challenge. The core problem is that delivery companies need to transport loads of around 100kg over distances up to 100km. Our focus is on how to facilitate these deliveries effectively, regardless of the vehicle type—be it a two-wheeler, three-wheeler, or four-wheeler. We realised that by creating a compact vehicle that bridges the gap between a two-wheeler and a three-wheeler, we could offer a new form factor that explicitly meets these needs. Our goal isn’t to compete with traditional three-wheeler markets but to provide a viable alternative to two-wheelers, with better storage options and customisation possibilities for different logistical requirements. This new vehicle category directly addresses the inefficiencies in current two-wheeler delivery setups.
Q. Are there plans to introduce more models soon?
A. Absolutely, we are actively developing various models, including three-wheelers, four-wheelers, and two-wheelers, targeting diverse market segments over the next few years.
Q. How have you managed the challenge of sourcing components locally?
A. Initially, the electric vehicle industry relied heavily on imports, but we have seen significant evolution. Imports have decreased as local production has increased. Except for the cells, our products are now entirely locally sourced, supporting our goal of ensuring 100% local production. This approach aligns with our commitment to build vehicles that are designed, made, and built for India using Indian components and suppliers.
Q. With the requirement for specialised, smaller components for your vehicles, how do you manage the supply chain during the initial low-production phases?
A. Initial numbers are modest as we build trust with our suppliers. The process involves a development phase with several stages, from building a few vehicles to pre-series and then scaling up for mass production. We rely on various suppliers for different stages—some for prototyping and low quantities, others for medium production runs, and some for full-scale mass production. Our supply chain evolves as our production needs grow.
Q. Considering the current financial climate, how are you managing finance for new vehicle deployment?
A. Finance availability has indeed been challenging. A significant issue is the lack of road testing for new vehicles, which makes financing companies hesitant as they can’t predict the vehicles’ longevity and performance. However, once we establish a high level of confidence in our products, securing finance becomes more feasible. We have observed a mix in the industry—some non-banking financial companies (NBFCs) offer high rates, while others are more competitive. Identifying reliable partners who offer good terms is crucial for us.
Q. Looking forward, do you see opportunities for expansion beyond tier 1 and 2 cities?
A. Yes, while we are currently focused on tier 1 and 2 cities, we see significant potential in tier 3 and tier 4 cities, particularly in the passenger segment. Our strategy involves a gradual expansion, aligning our offerings with the needs of larger, organised B2B players.
Q. Looking ahead, would you prioritise leasing or financing for growth in the next three years?
A. We currently offer both options and let the customer decide based on their comfort with each. Our role mainly involves dealing with NBFCs, banks, or funds. The choice between leasing and financing often depends on the customer’s business scale and whether they operate in a B2C or B2B model. We adapt to various combinations to accommodate customer preferences.
Q. Given the recent downturn in the EV three-wheeler segment and concerns about leasing companies failing to compensate investors, how does this affect your outlook on the industry?
A. It is concerning, especially hearing about these leasing issues. However, the government is assisting us, which is promising. In every new market segment, numerous players emerge, but only those adhering to ethical practices will persist. These challenges are likely short-term, and I believe the industry will stabilise as it matures.
Q. Given your insights on MSMEs, could you discuss their role in the electric vehicle industry and the ‘Make in India’ initiative? How critical are they for achieving these objectives, especially within the electric vehicle supply chain?
A. MSMEs are pivotal in realising the ‘Make in India’ goals, particularly in the electric vehicle sector. Over the past couple of years, there has been a noticeable increase in MSMEs serving as suppliers for essential components like powertrains and displays, which are crucial for advancing localisation efforts. In specific areas such as electronics—clusters, converters, controllers, and motor controllers—MSMEs have significant potential. While some assembly of these components occurs domestically, a substantial portion is still imported. Boosting local production of these parts is vital for reducing dependencies and enhancing the domestic supply chain, ensuring both the electric vehicle industry and the ‘Make in India’ initiative can thrive symbiotically.
Q. How does an OEM like yours engage with component suppliers to ensure the availability of necessary parts for your vehicles?
A. In the EV industry, as with any hardware product, there is a standard process of engaging with a network of suppliers. When specific suppliers don’t exist, we take the initiative to develop them. This has been a considerable challenge but also a valuable learning experience, allowing us to build a robust supply chain tailored to our innovative products.
Q. How difficult was it to find professionals to form your core team, considering the challenges of system integration for EVs in India?
A. It was very challenging. Ready talent for EVs is scarce, so we focus on hiring individuals willing to learn, experience, fail, and ultimately succeed. Passion, drive, flexibility, and openness are key attributes we seek, as specific skills can be developed.
Q. With India’s vibrant innovation landscape, how does Zen Mobility view its role?
A. The diversity of innovations in India is vast, offering a wide array of vehicles and solutions that cater to different consumer needs. At Zen Mobility, we are excited to be part of this ecosystem, bringing unique products and solutions that contribute to the industry’s growth and organisation.
