Electric Two Wheelers in the Market
Dear All, today we will be discussing the available options for Electric Two-Wheelers in the Indian Market. To understand well first I will take a big name in the automobile segment. Let’s take Bajaj or Honda from the petrol segment.
These giants are the manufacturers of automobiles as they assemble those components that are majorly being manufactured by their own units or different small vendors from India and abroad. They have a large setup, and to give quality in the market, to be competent, and to build the brand name, they keep developing their products, doing R&D.
This is not the case with Electric Two-Wheelers manufacturing. The entities who are into manufacturing these Electric Two-Wheelers are currently working in two ways. First, they are importing complete Electric Two-Wheelers from China assembled and putting their own branding and selling in the Indian Market and second, they are importing components from China and assembling them in their own premises, putting up their brand name and selling in the market. This does not need a large setup. But that does not mean that all Electric Two Wheelers are bad.
Electric Two Wheelers Calculations
If you study Google, you will find many e-commerce platforms where Chinese companies are selling assembled Electric Two-Wheelers and all components thereof. The price of an individual unit is around 25k to 30k. The business rule says whatever is a product’s cost price or in-house procurement price, the sales price should be 4 times the same. The reason is simple, the first part is the product cost, the second part is the overheads, the third part includes everything else like discounts, dealer margin, contingency cost, etc. and the fourth part is pure profit.
I have written the above paragraph just to help you to calculate what an entrepreneur needs today, just 25k-30k per Electric Two-Wheeler, which means to become a brand, one needs to have 100 to 200 units that can be sold in the course of the next six months. And how much amount is needed for this? Well for 100 units one will need a maximum of 30 Lacs, and for 200 units, this amount can be negotiated more and the amount can be anywhere between 50 Lacs and 55 Lacs. This gives you an inventory of 1.2 Cr to 2.4 Cr of market value.
Do you really think, a brand like this will be able to give you after-sales service? Remember Electric Two-Wheelers business is all about after-sales service as any other products you use like Car, Refrigerator, RO Water Purification Plant and etc.
How to identify the right Electric Two Wheelers for you
This is a bit tricky but not complicated. You need to follow some basic procedures, go through the same and I will share a small trick that will make you clear, where to go. You will need to do some homework before you buy an Electric Two-Wheeler. First, select at least three to four models of Electric Two-Wheelers. Then do the following for each (Also keep checking our upcoming blogs to know more on the below steps):
1) Make sure that the Company is at least a Pvt. Ltd. Company. (Don’t go for LLP)
2) Make sure that the Company is min. 3 Years Old.
3) Go through the Company Website. Read thoroughly the “about us”, “certifications” and “testimonials” although nowadays, even testimonials are paid, but still.
4) Speak on Website “Contact Us” Numbers to check whether they are functional or not, Responsive or not.
5) Check Service Network on Website.
6) Showroom/Service Centre in your City.
7) Showroom Size Minimum 300 sft and that too in a good kind of location
8) Service Centre Size Minimum 200 sft with the manpower available to deal with complaints.
9) While Buying the Conversion Kit, Ask for five Customers Numbers, and talk with them.
10) Check on GOOGLE with keywords “Company name” & “Consumer Complaint Electric Vehicle”
Some options of Electric Two Wheelers in government approved list
The small trick while buying Electric Two Wheeler
We understand your paying capacity and know that you can buy these Electric Two Wheelers without any support. But still, ask the Electric Two Wheeler dealer to arrange finance for your Electric Two Wheeler. This is like getting a proper reference for the bike or scooter you are about to buy. This is because, you can buy any Electric Two Wheeler, but banks and NBFC’s will not risk their loan or finance on any unapproved or non-reputed brand Electric Two Wheeler.
We don’t intent to harm the image of any Electric Two Wheeler manufacturer, but we also understand our responsibility to keep the Electric Two Wheeler market clean. We feel bad when innocent people get cheated.
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