Launching An E-Bike Company: Navigating India's Market

India has seen a significant push toward electric bikes in the past five years, with several startups leading the country's switch to clean fuel. Ather Energy, founded in 2013, is one such example, delivering high-performance electric vehicles at affordable prices. The lack of good charging infrastructure poses a problem, but electric bikes are still more affordable to run than petrol or diesel alternatives, as electricity prices do not fluctuate as frequently.

Choose the right manufacturer

When it comes to choosing the right manufacturer for your electric bike company in India, there are a few key considerations to keep in mind. Firstly, it's important to understand the current landscape of the electric vehicle (EV) market in India. The demand for two- and three-wheeled EVs in India is steadily increasing, and the country is committed to reducing emissions and addressing climate change. This creates a favourable environment for entrepreneurs looking to enter the electric bike dealership business.

With over a hundred electric bike producers in India, you'll have plenty of options to choose from. Your choice of manufacturer will depend on factors such as your investment budget, the space you can allocate for a showroom and workshop, and the brand's reputation and requirements. If you have a tight budget, consider emerging brands that offer premium products at fair prices. For instance, AMO Electric Bikes offers modern Li-ion battery-powered electric bikes and two-wheeler EVs with VRLA batteries at reasonable prices. With emerging brands, you can usually start with a smaller showroom space of around 1000 square feet, which also keeps your investment costs relatively low.

On the other hand, if you're looking for a more established brand, be prepared to need a larger showroom space. Prestigious and high-end EV manufacturers often require more than 1500 square feet of showroom space, which includes an area for maintenance and service. Keep in mind that the sale of electric scooters and bikes in India is subject to certain qualifying requirements, so make sure you understand the necessary paperwork and eligibility criteria before finalising your manufacturer.

When evaluating manufacturers, consider their product offerings and how well they align with your target market. Look for manufacturers that offer a range of features, performance options, and pricing to suit your customers' needs. For example, some manufacturers provide different riding modes, advanced safety technologies, smartphone connectivity, and environmentally friendly alternatives. Additionally, consider the after-sales service and support provided by the manufacturer, as this will reflect on your dealership's reputation.

Lastly, research the manufacturer's reputation and track record. Look for testimonials and reviews from current or previous dealers or partners. For instance, eBikeGo, a prominent player in the Indian EV segment, has received positive feedback for its promptness, discipline, and reliable EV ecosystem. Tork Motors and Hero Electric Photon are also considered reliable manufacturers of electric bikes in India, offering impressive features and performance at affordable prices.

Budget and investment

When it comes to budgeting and investment for starting an electric bike company in India, there are several factors to consider. Firstly, the type of electric bikes you plan to deal in will impact your budget. Modern Li-ion battery-powered electric bikes tend to be more expensive than those with VRLA batteries, but they offer superior performance and longer-lasting batteries. If you're starting on a tighter budget, it might be wise to opt for VRLA battery bikes or partner with emerging brands that offer more affordable options without compromising on quality.

The next crucial aspect is the choice between establishing an independent company or becoming a dealer for an existing manufacturer. Starting your own brand from scratch will likely require a higher initial investment, as you'll need to allocate funds for research and development, manufacturing, marketing, and establishing a dealership network. On the other hand, becoming a dealer for an established manufacturer can be more cost-effective, as you'll primarily need to invest in purchasing inventory, renting or buying commercial space, and promoting the brand in your local area.

The cost of commercial space varies depending on the brand you represent and the location of your dealership. Prestigious and high-end EV manufacturers often require showrooms of at least 1500 square feet, including space for maintenance and workshop facilities. These options tend to be more expensive due to the larger space requirements and the need to be located near major roads or highways. On the other hand, emerging brands may only need a showroom of around 1000 square feet, resulting in comparatively lower investment requirements.

When planning your budget, don't forget to account for the interior design and setup of your showroom. The cost of setting up a showroom can vary depending on the brand's specifications and your chosen design elements. Additionally, you'll need to consider the cost of hiring and training staff for your dealership, as well as any ongoing maintenance and operational expenses.

Lastly, it's important to be aware of the potential challenges and opportunities presented by the current state of electric vehicle infrastructure in India. While the government provides FAME II incentives to promote electric two-wheeler ownership, the lack of widespread charging stations can be a hurdle. Investing in quick-charging technology or swappable battery solutions can help alleviate range anxiety among potential customers. However, these technologies come at an additional cost, so you'll need to factor that into your budget and pricing strategy.

Dealership application

The demand for two- and three-wheeled electric vehicles in India is growing steadily, making it a profitable time to start an electric bike dealership business. To apply for a dealership, follow the steps outlined below:

• Choose a Manufacturer: Research India's diverse EV manufacturers and select the one that best suits your goals and budget. Some popular options include AMO Electric Bikes, Hero, Mahindra, TVS, Bajaj, and Joy.
• Access the Application Form: Visit the official website of your chosen manufacturer or brand and look for their dealership application form. This form is typically the first step in the dealership application process.
• Complete the Application Form: Provide the required information, including your personal and educational details. You will also need to disclose your property and investment details. If you have an existing business, provide those details, or indicate "NA" if this is your first venture.
• Submit the Application: After completing the form, submit it to the manufacturer. A customer relationship officer from the company should then contact you to initiate the next steps.
• Verification: The company will send a reply to your application for verification purposes. They will typically send an officer to your location to inspect and approve the place.
• Payment: Once you receive approval from the company, you will need to pay the full dealership amount. This may include costs related to showroom space, interior design, initial inventory, and spare parts.

It is important to note that starting an electric bike dealership requires careful planning and consideration of various factors, including budget, location, and manufacturer partnerships. Ensure that you thoroughly research the requirements and eligibility criteria before submitting your dealership application.

Showroom requirements

When it comes to setting up a showroom for your electric bike company in India, there are several requirements and factors to consider. Here are some detailed instructions and guidelines to help you get started:

Firstly, it is important to choose a suitable location for your showroom. Look for a commercial space that is easily accessible and visible to potential customers. Ideally, it should be located near a highway or major road, as this will make it convenient for customers to reach you. Keep in mind that the space requirements may vary depending on the brand you intend to associate with. Prestigious and high-end electric vehicle (EV) manufacturers typically require a showroom space of more than 1,500 square feet, which includes an area for maintenance and servicing. On the other hand, if you're considering emerging brands, a showroom space of around 1,000 square feet may be sufficient.

The next step is to design and set up the showroom. The interior of the showroom should be aesthetically pleasing and functional. Ensure that the space is well-lit and spacious, with enough room to display your electric bike models effectively. Consider the overall layout and create designated areas for different activities, such as a display area, a customer service desk, and a workshop or service area. Remember that the workshop or service area is crucial, as it allows for maintenance and repairs, which are essential for customer satisfaction and retention.

To enhance the customer experience, it is beneficial to have a variety of electric bike models on display. Showcase different styles, features, and price points to cater to a diverse range of customer preferences and budgets. Ensure that your showroom staff is knowledgeable about the products and can provide valuable insights and advice to potential customers. Consider offering test rides to customers, as this can significantly improve their buying experience and increase their confidence in your products.

In addition to the physical showroom, it is essential to have an online presence. Create a user-friendly website that showcases your electric bike models, provides detailed specifications, and allows customers to easily get in touch with you. Utilize digital marketing strategies, such as search engine optimization and social media marketing, to increase your brand's visibility and reach a wider audience. Remember to also focus on building strong customer relationships, both offline and online, as this will be key to the long-term success of your business.

Lastly, keep yourself updated with the latest trends and advancements in the electric bike industry. Stay informed about new technologies, innovations, and consumer preferences to ensure that your showroom remains relevant and appealing to potential customers. Attend industry events, network with other businesses in the EV sector, and consider partnering with reputable manufacturers or brands to enhance your showroom's reputation and credibility. Remember, by staying proactive and adaptable, you can ensure the success and sustainability of your electric bike company in India.

Charging infrastructure

The success of an electric bike company in India relies heavily on the availability of charging infrastructure. While the country is still in the early stages of electric vehicle (EV) adoption, there are some key considerations to make when it comes to charging options for your customers.

Firstly, it is important to recognize the current challenges in India's EV charging infrastructure. The lack of widespread and accessible charging stations is a significant issue, particularly in a vast country like India. This can cause "range anxiety" among potential electric two-wheeler owners, who may worry about finding a charging point when needed. The time required to charge an electric vehicle is also a factor, as it can take several hours to fully charge, in contrast to the quick refuelling of traditional fuel options.

To address these challenges, you could consider the following strategies:

• Partner with existing charging networks: Look for partnerships with companies that already have a presence in India, such as eBikeGo, which offers a range of electric mobility solutions. By collaborating with established players, you can leverage their existing infrastructure and expertise.
• Explore fast-charging options: While quick-charging technology is available, it is not yet widely accessible. However, by offering fast chargers at your dealerships or authorised service centres, you can provide added convenience and peace of mind to your customers.
• Consider swappable battery technology: Some companies have introduced swappable batteries, which can significantly reduce downtime during charging. This could be a unique selling point for your company, alleviating customer concerns about charging times and the range of their electric bikes.
• Innovate with portable charging solutions: Another way to mitigate range anxiety is by providing portable charging solutions that are easy to carry and can be used on the go. These could be offered as an add-on purchase or even included with the bike, providing customers with a sense of security.
• Educate customers on charging best practices: It is important to guide your customers on how to get the most out of their electric bikes. This includes educating them on charging times, battery care, and the use of different charging modes to optimise battery life and performance.

By focusing on charging infrastructure and providing innovative solutions, you can differentiate your electric bike company in the Indian market and contribute to the country's goals of reducing emissions and counteracting climate change.

Frequently asked questions