HOP Electric Mobility to invest Rs 100 crore to expand EV manufacturing capacity

Source: Economic Times, 05 January 2022

HOP Electric Mobility, a diversified business venture of Rays Power Infra, is looking at investing Rs 100 crore over the next two years to expand manufacturing capacity for electric vehicles.

The company currently has a manufacturing unit at Jaipur in Rajasthan with a production capacity of 50,000 vehicles per annum, which can be expanded to roll out 100,000 units every year. HOP Electric plans to set up a second manufacturing facility, which will take the total capacity to 500,000 units per year by 2023. The company is looking at raising resources to fund its expansion plans.

“We are targeting the commuter segment with our products,” said Ketan Mehta, founder and chief executive officer, HOP Electric Mobility. “Currently, most electric two-wheelers are priced upwards of Rs 1 lakh. We are looking at garnering volumes in the mass market by offering affordable scooters and motorcycles, with longer range and higher speeds.”

HOP Electric offers two electric scooters—HOP LEO and HOP LYF—in the local market. The products deliver a range of 70-120 km and retail between Rs 72,000 and Rs 95,000, depending on the state of sale. A third product, an electric motorcycle OXO, is scheduled for launch next month.

To shore up volumes, the company is looking at launching 10 new products over the next three years.

HOP Electric, which commenced sales earlier this financial year, is registering sales of around 1,000 units every month. Mehta expects monthly volumes to go up to 4,000 units by March/April 2022. The company is looking at selling at least 50,000 units in CY2022.

To increase reach, HOP Electric plans to have in place 100 dealerships by the end of the current financial year. Overall, the plan is to expand footprint across India in the next 2-3 years. The company has around 50 sales outlets spread across nine states, mostly in the southern part of the country.

“The potential for electrification in the two-wheeler and three-wheeler segments is huge. If current policies continue, all two-wheelers sold in the local market are likely to go electric by 2030,” said Mehta.

HOP Electric also plans to put in place a battery swapping and charging network across the country by the end of 2023. Its pilot network with five swapping stations and 50 batteries has already started operation in Jaipur, and the brand is now planning to further expand in other cities and states.

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