With its business, Quantum Energy hopes that FY25 will be a turning point. By the end of current fiscal year, the two-wheeler manufacturer hopes to have produced 50,000 units annually, up from just 6,000 the previous year. Among the few Original Equipment Manufacturers (OEMs) to be approved for incentives under the Rs 500 crore Electric Mobility Promotion Scheme (EMPS scheme) is Quantum. Up to Rs 10,000 in subsidies are offered under the scheme for two-wheelers and Rs 25,000 for e-rickshaws.
Taking advantage of the EMPS program, company representatives reported that their B2B and B2C segments are growing, with a combined sales volume of 10,000 units in the first four months of the current fiscal year.
In addition, the business wants to aggressively broaden its product line by introducing new items to its B2C Plasma electric two-wheelers and Bziness electric scooters, which are targeted at fleet deliveries to e-commerce. With agreements with a variety of fleet operators, including ScooEV, Bijliride, BluWheelz, Bike Bazaar, Hala Mobility, Zevo, Green Drive Mobility, and South-based food retail firm Ratnadeep Group, the company has witnessed an increase in demand from fleet operators due to the growth of India’s gig economy.
Quantum is also considering manufacturing electric three-wheelers, with the new product in “an advanced stage of prototyping.”
The EV startup is planning an aggressive capacity expansion by adding manufacturing capabilities at its current facility in Pashamylaram, Patancheru Mandal, Sangareddi District, Telangana. The facility currently has a total installed capacity of 50,000 units. The promoters intend to invest over Rs 100 crore in a new facility near the Hyderabad Airport Electronic City, increasing the installed capacity from 50,000 units to 120,000 units. Quantum is also in the advanced stages of entering the battery-swapping space with an alliance with Sun Mobility and is planning to introduce its first batteryswapping electric two-wheeler based on the Quantum Bziness platform.
In terms of battery technology, Quantum has collaborations with firms like Log9 and Battery Smart, where their Bziness and Bziness Plus scooters are being used with removable batteries supported by the solutions provided by these battery makers.
Chakravarthy C, MD of Quantum Energy said, “Understanding the needs of a delivery rider, we have introduced a new product with a removable LFP battery that has a range of 130 kilometres and a battery that can be charged at home, backed by an industry-first 90,000 km warranty.
Quantum has a significant presence in South India, specifically Andhra Pradesh, Tamil Nadu, and Karnataka. The company plans to expand its pan-India footprint by opening dealerships in Rajasthan, the Delhi NCR region in the north, and Bihar. They have also built new dealerships in Maharashtra besides foraying into East India, opening stores in Odisha, Jharkhand.
Chakravarthy C added, “At Quantum Energy, we believe in going step-by-step, stage-by-stage, going to one market, focusing, and once you attain some kind of clarity, then reach out to other markets. For us, it is a staggered but sure-footed move.” The company also wants to eventually go for a $10 million Series A funding round to expand its two-wheeler business in the passenger and cargo e-auto markets over the next 48 to 36 months.
Chetana C, Director of Quantum Energy said that the “fundraise will support the introduction of new products in the B2C space and consolidate their position in the B2B space.”