Electric two wheelers on the scooter side have hub motors attached in the wheel itself. Rather than selling just the wheel to the OEM or to hub motor suppliers like Bosch, they are planning to sell the entire kit (wheel plus hub motor plus controller). It increases kit value at one go.
Afaik, auto OEMs prefer to consolidate vendors where possible, which could help them.
Though I’m quite sceptical about them really making the entire electronic part in India from scratch, it could increase content per vehicle significantly, and even if margins stay where they are, it would add to absolute profitability.
Nonetheless, I think it’s an optionality. They have hardly invested much till date, and most Indian ancillary companies that claim to manufacture hub motors, seem to be importing parts and assembling them here.
Disclosure : Invested heavily and have vested interest.
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