AMO Electric To Raise $100M, Plans To Roll Out New E-Two-Wheelers

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AMO Electric, an electric two-wheeler manufacturer, plans to raise approximately USD 100 million in the coming financial year. 

The firm has affirmed plans to introduce new products with a focus on their R&D department, expanding manufacturing capacity, and improving sales infrastructure across the country for securing a spot among the top three companies in the sector, stated founder and MD of AMO Electric, Sushant Kumar.

Currently, the firm is in negotiations with numerous financial institutions about raising funds and intends to introduce two new products in the current quarter and four new high-speed vehicles (50-85 km/h), including an electric bike, with a range of 120 kilometres or more and possibility of swappable batteries, in the next fiscal year.

The Noida-based startup presently distributes four electric scooters through a nationwide sales network of over 150 stores and plans to have around 650 dealerships across the country, allowing it to sell more units in the future.

“In the coming fiscal year, we expect to sell about 1.2 lakh units. We now have a presence in around 13 states and two union territories. We plan to expand in 25 states and six UTs in the coming fiscal year” Kumar stated with intentions to roll out more vehicles into the market.

The firm produces around 8,000 units each month, as of now at their Noida-based facility and have laid strategies to increase their production capacity threefold.

AMO presently obtains the majority of its EV components from third-party manufacturers.

Kumar further expressed that, in 2019 when the company was started, the awareness among people regarding electric two-wheelers was low. However, with the government increased engagement in the sector through their policies and new firms arising, the demand for e-two-wheelers has picked up the pace.

According to Kumar, the rise in traditional fuel costs also influenced people’s decision to purchase electric two-wheelers, and the new entrants will further assist in raising awareness about electric mobility and contribute to the segment’s overall growth.

“The electric business is currently entering a development era, with annual growth rates ranging from 400% to 500% for the next 6-7 years,” He expressed, “There is now no competition, and there is room for everyone to flourish. More serious players are required to ignite the market”.

The firm has sold about 9,000 units in the current financial year and prepares to sell an additional 20,000 units in the forthcoming quarter.

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