Zapp Electric Vehicles wants to transform the London-based electric two-wheeler brand into a global EV company, and TechCrunch has exclusively learned that India will be one of its launching points.
The company will launch its first product, the i300, an electric two-wheeler for urban use, in the UK early next month, followed by Thailand. Now it’s adding India to its growing list of markets, which it sees as a huge market that will be a true test bed for the company’s international expansion strategy, Zapp founder and CEO Swin Chachwan told TechCrunch.
The Nasdaq-listed company went ahead with its plans for India after Chachwan mentioned the country’s potential. The world’s most populous country not only sees millions of two-wheeler sales every year, but is also the world’s second-largest two-wheeler manufacturer after China.
“When we did our research a few years ago, we thought India would be our second phase, but we decided early this year that we couldn’t wait any longer,” Chatsuwan said.
Zapp has appointed Indian electric two-wheeler manufacturer Bounce Electric 1 as its contract manufacturer to manufacture and sell the i300 locally. Sales are expected to commence in 2025, subject to approvals. The British company aims to have a production capacity of at least 5,000 units per year in India as part of its broader global target of 25,000 units by 2026.
Chatsuwan told TechCrunch that of the 17 million two-wheelers sold in India last year, 2.8 million were fast vehicles, and 36% of those fast vehicles were heavy-duty cruiser motorcycles from Chennai-based brand Royal Enfield. Zapp is looking to replicate Royal Enfield’s success with its step-through model, which was first unveiled in 2018.
“We are not trying to conquer the world. We are not trying to halve Royal Enfield’s market share and sell half a million bikes in India. We are not doing that. We will find that BMW, especially the CE 02 and CE 04 step-through electric scooters, are our competitors in terms of quality and performance,” the executive told TechCrunch.
Zapp’s i300 India launch will help the company expand its annual total addressable market (TAM) by 25% to 60 million units. The company said that by adding India to its map, its TAM for the first phase of its market debut has reached 30 million units annually.
Chatsuwan said the early launch in India would help Zapp understand the “breadth, depth and quality” of the country’s supply chain, which could help it export vehicles from India to global markets over time.
Unlike the electric two-wheelers from major Indian manufacturers Ola Electric, TVS Motor and Ather Energy, which are priced between $1,000 and $1,800, Zapp’s i300 will be an expensive option. The two-wheeler will be launched in Europe with a base price of $7,590, excluding taxes.
The Indian price has not been finalised yet, but Chatsuwan said, “It will not exceed Rs 1 million, but it is unlikely to be lower than Rs 500,000.”
The i300 is coming soon.
Zapp unveiled its first two-wheeler, the i300, in 2018. The vehicle features an aerospace-grade alloy load-bearing exoskeleton and a chrome-moly steel underbone design. It also features an air-cooled electric motor with a maximum output of 14 kW and two portable batteries with a capacity of 720 Wh each.
The company began taking pre-orders for the i300 shortly after its unveiling, charging a €100 reservation fee. The company promised deliveries would begin in the fourth quarter of 2019. However, production and deliveries were halted due to the COVID-19 pandemic.
Nonetheless, Zapp is set to deliver the i300 to the UK within a few weeks and also plans to start selling it in Thailand this year through its facility in Bangkok.
Zapp, Reborn as 'The Perfect Motorcycle Company'
“We’re not a one-off hit company. We want to show the world that we’re a full-fledged motorcycle company, but let’s start by getting our first product up and running,” Chatsuwan told TechCrunch when asked if Zapp would expand its product lineup.
The company also plans to add “a lot” of personalization options and accessories to the i300. The company already offers the two-wheeler in four versions and will allow consumers to customize the color and wheel design according to their preferences, as well as add accessories including hidden storage and a quick charger.
Zapp plans to expand into Spain, Italy, Vietnam and Indonesia in Phase 2, and expand into Middle Eastern and South American countries over time.
“We want to be the 21st century version of Triumph, Royal Enfield and Norton,” said Chatsuwan.
