Buying a vehicle is a big investment decision for most Indian households. Lots of factors come into question like speed, safety, longevity, support and environmental impact. One innovation at a time, the EV industry is putting those apprehensions at ease. Nemin Vora, Founder and CEO at Odysse Electric Vehicles, gives more perspective.
Edited excerpts…
What are your views on the state of the EV market?
The EV market is very competitive and there is cutthroat competition among players. New players and big names are jumping into the EV boat. Things are not very easy for a startup like us. But having said that, we see a huge potential in the EV segment. While someone might have a bigger piece of the cake, I believe that there is a space for everyone.
There is a huge amount of electrification happening in the B2B segment. Delivery partners of e-commerce platforms like Flipkart, Amazon and Zomato are beginning to prefer EVs for deliveries rather than ICE (Internal Combustion Engines). They have set targets of 50% and 100% electrification.
Even the B2C segment is seeing increasing sales. Customers have started to understand the cost-benefit of EVs compared to petrol vehicles. Since the initial cost of acquisition of an ICE and an EV is almost similar, it ends up being a no-brainer to select an EV. The operational cost of running an EV is about 10% of the petrol vehicle.
Tell us about the gap in the market you saw Odysse filling.
Our journey in the EV space started in 2017. Initially, we started producing three-wheelers but later in 2018, we pivoted into two-wheelers. The three-wheeler market is very price-driven rather than quality or product-driven. So we started R&D in electric two-wheelers and by March 2020, we launched our three high-speed products.
I have always been into automobiles and when EVs started to come up, I saw an opportunity that could be futuristic and long-term. At the time, the big players hadn’t yet entered that market. There were a few major issues in the EV space. The market was unorganised, vehicles were low-speed, the quality of products was an issue and finally, service backup was not easily available. We aimed to fill in those gaps through Odysse.
We launched three high-speed products that were tested by regulated bodies, registered with insurance and equipped with safety features. We also made service backup and quality products our core focus. Today, in any product segment, if a customer has an issue, it’s not a problem as long as there is prompt resolution.
What are some preferences of Indian customers and how does your brand cater to them?
Indian consumers are demanding and different cohorts have different demands. A low-speed product can cater to the needs of elders who don’t have licenses or people who want to ride in a restricted radius. We have a product focussed on the women’s segment that is sleek and stylish, has lots of storage and comes in attractive colours like mint green, peach, pink and yellow. Last year, we launched a commuter bike because in the Indian market, 65% of the Indian two-wheeler sales are bikes and of that, 70 to 80% are daily commuter bikes. Currently, about 90% of our sales are within the 18 to 40 demographic. That is 90% of the age group where our sales are happening and 92% of the traffic is male.
What are some factors that deter people from adopting EVs?
Range anxiety was one of the biggest issues with the EVs that the customer had. But today, vehicles can run up to 160 kilometres per charge. The two-wheeler predominantly is an intra-city product with a typical maximum running of 100 kilometres per day, while the average is between 30 to 40 kilometres.
Second, there was a lack of confidence in the product. Certain incidents in the EV space have imprinted on the customer’s mind and safety is still a concern for them. Initially, there was a lack of standardisation and government interference but over the last two years, the government has laid down stringent norms for EVs. The AIS 156 phases 2 and 3 are the best in class safety standards and most EV players are compliant with those norms. And in terms of product quality, once a customer tests the product, I’m sure they’ll understand its quality through its build.
Lastly, a good after-sales service network is crucial and is something we have given a lot of importance to. All our dealerships work on the 3S model – sales, service and spares. At Odysse we have 63 dealerships spread across 15 states in India and aim to add at least 4-5 new dealerships every month.
What has been the best way to reach out to your customer?
In terms of the marketing strategy, we have been very focused on social media to create brand recall and awareness. We reach out to potential customers through multiple online channels like Instagram and Facebook, and also e-commerce platforms like Flipkart and Amazon. We also collaborate with other partners to create cross-branding and build synergy. This way, we create better visibility and trust.
