Mohali-based EVage Motors, which started in 2014 with the goal of reducing carbon emissions in the light commercial vehicle (LCV) segment, aims to achieve up to a 30% market share by 2035. By then, it anticipates the LCV category to double to a million units in India. The company projects an 8% compound annual growth rate (CAGR) for the LCV segment over the next decade, expecting electric vehicles (EVs) to make up around 15-20% of the market. However, despite the potential of electric LCVs to provide sustainable last-mile delivery solutions, adoption is hindered by challenges in EV financing, insufficient charging infrastructure, and resale value concerns.
Inderveer Singh Panesar, founder and CEO of EVage Motors, acknowledges these constraints, stating that a 15-20% penetration level is a realistic expectation. He adds that government support and fleet operators’ response to market dynamics will significantly influence EV adoption in this category. Despite these challenges, EVage Motors is optimistic about its market prospects. The company’s first product, the FR8 1-ton small commercial vehicle launched in 2012, claims to offer a net-positive total cost of ownership (TCO) and high resale value, even without subsidies. This vehicle, part of Amazon’s fleet in Mohali for the past two years, enables fleet operators to maximise utilisation due to its 20-minute fast-charging capability.
EVage Motors employs a three-pronged product differentiation strategy to distinguish itself from competitors. Key attributes include an advanced battery offering over 100 km range on a single charge, high volumetric density of the cargo area, and longer battery life. The FR8 uses a 15kWh lithium-titanium-oxide battery pack, assembled in-house at the company’s Mohali plant, with cells sourced from Toshiba in Japan. This battery provides around 100 km range per charge and allows for minimal downtime thanks to its fast-charging capability. Additionally, the vehicle’s payload capacity and cargo design enable more efficient delivery compared to some internal combustion engine-powered counterparts.
Singh highlights that fleet operators appreciate these metrics, which guide their choice of product. EVage Motors owns the intellectual property on the powertrain, battery, and vehicle control software, all developed in-house. The company recently partnered with UK-based DG Innovate to manufacture its e-drivetrain locally in India. So far, EVage Motors has raised a seed funding round of US$ 28 million (approximately Rs 233 crore) and aims to achieve 75% capacity utilisation at its current facility in Mohali before seeking additional funding. The modular manufacturing facility can be replicated across the country as the company expands its presence beyond Mohali and Delhi-NCR to 15 more cities by the end of 2025.
Singh expresses the company’s ambition to sell several thousand more vehicles before raising the next funding round. EVage Motors aims to become a pan-India distribution company, investing heavily to build its network over the next two years. The company will continue to focus on e-commerce logistics providers and small fleet operators as key customers in its journey toward profitability.
DG Innovate plc (LON:DGI) is an advanced research and development company pioneering sustainable and environmentally considerate improvements to electric mobility and storage, using abundant materials and the best engineering and scientific practices. Deregallera is a subsidiary of DG Innovate.
