advertisement
India-based mobile and consumer electronics brand Micromax has reportedly shown interest in entering the electric vehicle market. No, we’re not kidding. In a recent ET report, one of the company’s executives was quoted saying Micromax is looking into electric vehicles.
While he did admit that it was too early to comment on products and a launch time frame, the company’s interest is primarily centered around two- and three-wheeler electric vehicles. But will a brand like Micromax, which has heavily borne the brunt of an aggressive product push by China-based brands like Xiaomi, Vivo and OnePlus, manage to enter this space?
Too caught up to read? You can listen to this story instead
We spoke to an industry expert to get his point of view and unsurprisingly, he believes that Micromax might not be making the right choice by entering the electric vehicle (EV) space.
Here is a brand, known for making phones, which has lost its position in the market (not even in the top five now). For it to foray into a space that’s got established auto giants like Hero and Lohia Motors is never going to be easy. And Faisal Kawoosa, Lead Analyst at CMR, who’s following Micromax for many years, concurs.
The ET report claims that Micromax has already sent its prototypes to the government for approval, but Faisal and other experts we spoke to aren’t sure if Micromax, as a brand, has the clout to succeed in this domain.
Despite the apprehension, some people believe that Micromax might have been tempted by the relatively unorganised nature of the electric vehicle space.
A few attendees The Quint spoke to at a recent EV Expo in the country, said that the two-wheelers on display lacked originality, as they all had similar capabilities and low on the design factor. Can we trust a brand like Micromax (mostly importing its devices from China) to find a footing for itself with a quality product?
According to the last reported industry research quoted by the media, merely 25,000 electric vehicles were sold till 2016. Hard to see that number rising between then and 2018.
Micromax’s focus on two-wheelers and three-wheelers could also have also been prompted after the government suggested tax incentives for those manufacturing electric vehicles with local content.
Another report claims that over 95 percent of EVs in India are low-speed electric scooters with maximum speeds as high as 25Km/hr.
There’s nothing wrong in Micromax eyeing this space, but what about the 40 million phone users they have on board? Faisal feels that instead of entering a highly specialised sector like EVs, the company could have tried its luck in the smart speaker segment.
He might have a point there, but let’s assume Micromax knows what it’s doing with its electric vehicle plans and gives it a serious push.
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)