Simple Energy to Invest Rs. 2500 Cr in New EV Scooter Plants in TN

Simple Energy to Invest $330 million in New EV Scooter plants
EV Scooter Startup Simple Energy aims to pump in about Rs 2,500 crore ($330 million) to create new EV Scooter capacity. The startup has raised $21 million so far and expects to close another round of funding in the “three-digit millions,” said Suhas Rajkumar, the company’s chief executive officer.Bangalore-based EV maker Simple Energy has signed an MoU with Tamil Nadu govt to set up a new plant near Dharampuri. The first phase of the plant, near Shoolagiri in Hosur, will have a production capacity of a million units per annum.

Simple Energy plans to buy 600 acres for the new facility, complete with an R&D center and testing facility.

Simple Energy“We founded the company with the goal of doing everything in house, including the battery pack and the motor, at a time when 99% of the EV manufacturing is dominated by China,” the 25-year-old, who is also co-founder of Simple Energy, said over a video call. “We want to follow in the footsteps of Tesla and Rivian who do everything themselves and do it right.”

The electric scooter market is competitive in India — and treacherous. Ola Electric Mobility Pvt, a local rival, already went public with plans for the world’s largest electric scooter factory, making 10 million vehicles annually by 2022. But the company this month said it would delay shipments because of the global chip shortage.

“We are building three different variants of the scooter including affordable and premium versions to target global markets like Southeast Asia, European Union and Australia where demand is high,” Rajkumar stated.

He added that chip shortages are creating some challenges. But the company signed agreements with Texas Instruments Inc., Renesas Electronics Corp. and two other chipmakers to lock up as much supply as possible, the CEO said.