The e-SCV market is a promising one to be part of: MD of TI Clean Mobility

Our objective is to cover the entire commercial vehicle spectrum, from heavy commercial vehicles to small commercial vehicles. This strategy ensures we cater to all segments of goods movement via four-wheelers. The small commercial vehicle (SCV) segment is particularly interesting for several reasons. First, it plays a crucial role in last-mile mobility. Additionally, in the overall commercial vehicle market, SCVs (up to 3.5 tonnes GVW) account for nearly 60 per cent of the total market. Therefore, we have chosen to focus on the commercial space, particularly in the three-wheeler and SCV markets.

Because the benefits of EVs are most significant when vehicles are used extensively. For instance, owning a scooter might only save you marginally if you ride 30-40 km daily. However, an electric three-wheeler driver covering 150 km can see a total cost of ownership benefit of 25-30 per cent over diesel and 10-15 per cent over CNG. The difference is even more pronounced for SCVs. This is why we are not in electric two-wheelers and personal vehicles, as the adoption of electric products in the commercial segment is higher due to significant operational savings.

When we introduced our Montra e3w, it featured distinctive styling, improved ergonomics, better range, and superior total cost of ownership compared to diesel. There was of lack of differentiation and potential for innovation. Similarly, we are applying these differentiation vectors — style, range, ergonomics, and customer service — to small commercial vehicles (SCVs). We aim to offer the best e-SCV range in the industry with a born electric platform, ensuring it looks distinctly electric. So, our competitive advantage lies in a combination of factors: price, features, ergonomics, customer service, over-the-air updates, and a targeted approach. Our confidence also stems from extensive reliability testing, including 100,000 to 200,000 km of road tests and rigorous torture tests to ensure durability under adverse conditions. Our products will be produced out of a modular platform, which will allow us to expand our range and cater to specific needs, such as building refrigerated vans or vehicles for volumetric material transport.

We will focus on offering robust charging solutions, addressing home charging needs, and ensuring the installation of reliable plugs and equipment to avoid any confusion. Many accidents occur due to inferior charging apparatus, so we prioritise both quality and safety. Additionally, we are collaborating with charge point operators, particularly to support fleet owners who require continuous vehicle operation. As we progress, we’ll explore battery-swapping options, as our vehicle design supports it.

We are in the homologation stage for the first variant, with our factory in Ponneri, Chennai, nearing completion. The factory will have a capacity of 50,000 units operating across 3 shifts. We have a lean manufacturing setup that aims to minimise resource wastage and maintain a tight cash-to-cash cycle, ensuring efficient use of capital. We will launch the first e-SCV - a 3.5-tonne model - during this September or October. This will be followed by 1.75-tonne and 2.2-tonne variants. We intend to focus on all payload categories.

We will target around 19 major markets, which represent 35-40 per cent of the total potential, in the initial phase. We will utilise telematics to build customer intimacy and understand vehicle operations. We are entering a crowded market with our vectors of differentiation.