The company, which has a joint venture with China’s Beiqi Foton, said there is massive potential to electrify the small and medium commercial vehicle segment given the government’s drive to transition urban delivery fleets to e-mobility.
“We are going to have a range of products in these two segments,” said Manvi Jain, director, PMI Group, adding there is strong demand coming in for small electric trucks also from the FMCG sector.
To be sure, Tata Motors and Ashok Leyland have introduced electric vehicles in the small commercial vehicle segment especially focused on last-mile deliveries. But Jain feels there is enough market opportunity.
The company is in the process of setting up a new facility in Chakan, Pune, for manufacturing electric commercial vehicles. PMI Electro, which has a 70:30 joint-venture with Foton India, has earmarked an investment of Rs 250-300 crore to make operational the first phase of the project in the next one year.
The initial investment will be made by the promoters using internal resources. PMI Electro’s facility in Chakan will have initial capacity for manufacturing 2,500 commercial vehicles per annum, which can be increased to 3,600 units per annum with minor fine tuning and without any major capex. Beiqi Foton is a technology partner in the project.
Separately, Jain said the electric bus segment is expected to post robust growth in the next 3-4 years, with the government launching the National Electric Bus Program (NEPB) to accelerate the shift to clean mobility in the public transport segment.
“CESL (Convergence Energy Services Limited) has been aggregating demand to electrify fleets operated by State Transport Undertakings (STUs). There is a lot of work going on to develop a charging network for e-buses. Apart from intra-city usage, there is also a lot of potential to grow in the inter-city segment in the next three years,” Jain said.
Overall, PMI Electro Mobility is looking at clocking revenues of Rs 800-900 crore in the ongoing financial year, compared with Rs 380 crore recorded in FY22. The turnover thereafter is expected to double next fiscal with the company ramping up capacity, expanding its product portfolio and delivering more vehicles.
In the ongoing financial year, PMI Electro is looking at delivering 1,300 buses to various state governments.
PMI Electro Mobility and Olectra Greentech have more than 800 electric buses each currently. Tata Motors, JBM Auto and Switch Mobility have fleet sizes of 742, 562 and 200 e-buses, respectively, data sourced from Vahan portal on October 17 showed. The company has 22 depots across 14 states, including Uttar Pradesh, Delhi, West Bengal and Odisha.