Greaves Cotton Ltd expects a turnaround in its electric vehicle (EV) business, fuelled by initiatives such as revamping its EV dealer network in major cities and the anticipated inclusion of its electric two-wheelers in the EMPS (Electric Mobility Promotion Scheme) for subsidies.
In the first quarter of FY25, Ampere-branded electric two-wheeler volumes grew by 10 per cent to 9,811 units, while three-wheeler volumes increased by 19 per cent to 3,074 units quarter-on-quarter. The company remains among the top five players in the electric two-wheeler segment, with a 3.4 per cent market share.
K Vijaya Kumar, ED & CEO of Greaves Electric Mobility Pvt Ltd, announced during the Q1FY25 earnings call that MHI has confirmed that Ampere-branded two-wheelers are eligible for EMPS registration, and the company is in the final stage of the certification process.
Previously, GEMPL was among several electric two-wheeler manufacturers issued show-cause notices by MHI over FAME-II subsidy violations. The company refunded ₹124.91 crore in incentives plus ₹15.07 crore in interest, without admitting any wrongdoing. It is now awaiting re-certification for FAME subsidies.
Meanwhile, GEMPL is expanding its presence in the electric three-wheeler market, which has shown stronger growth recently. To boost E3W sales, the Eltra City, its electric three-wheeler in the L5 category, is offered at a price of ₹3.7 lakh. Its E3Ws - Eltra City Passenger and Eltra Cargo - are eligible for subsidies under the MHI (Union Ministry of Heavy Industries) scheme.
GEMPL also added about 30 touchpoints in the 3W (L3 + L5) segment in the June 2024 quarter, expanding its geographical presence and strengthening relationships with dealers, B2B, and B2G partners.
Over the last 4-5 quarters, the company has addressed MHI’s concerns, enhanced its product portfolio, streamlined processes, and improved cost efficiencies. As part of its corrective measures, Greaves is re-establishing its distribution network, focusing on major cities and centralising customer service. It is now managing all customer complaints directly from a central office. These efforts have led to a 95 per cent reduction in customer complaints during the June quarter, significantly improving response times to both customers and dealers.
“This strategy has been crucial in improving its response time to both customers and dealers, as reflected in growth shown in the first quarter results,” stated Kumar.
Akila Balachandar, CFO of Greaves Cotton Ltd, emphasised that the EV business is a long-term endeavour, and the management remains optimistic about its growth potential. She highlighted the company’s commitment to expanding its product range, improving internal efficiencies, and driving profitability.
Greaves Electric Mobility Pvt Ltd (GEMPL), the EV arm of Greaves Cotton, reported a total revenue of ₹466.35 crore and a loss of ₹641.56 crore in FY24, compared with a revenue of ₹1,092.35 crore and a profit of ₹6.55 crore in the previous fiscal.