Under the brand name BGAUSS, RR Global, the $800-million electrical industry conglomerate, announced it is entry into the electric two-wheeler space, which will be a range of premium electric scooters designed for urban and developing areas.
The company will roll out two BGAUSS products with a total of five variants in the Indian market to begin operations.
What gives RR Global the confidence is the fact that in an EV the most important parts are circuitry and electronics, and RR Global has been in that business for 35 years.
They supposedly understand the product very well—the motor, controller, AC/DC, lights, battery, all of these and have developed their own motor and controller, which is the heart of any EV. This will give them forward integration.
At the same time they plan to use the service and distribution network of wire and cable business (RR Kabel); which will give BGAUSS, an access to more than 6,000 dealers and distributors and over 300 service centers. This gives them the confidence on the servicing front.
The manufacturing and assembly of its electric scooters has already begun at its plant in Chakan, near Pune. In the initial phase, the company plans to produce 80,000 units in financial year 2020-21.
However, it will be advisable to mention here that both Dyson and JSW Energy had also announced their sudden entry into EV segment and both exited after realizing it wasn’t commercially viable to continue with their plans.
Reference- Financial Express, Mercom India, Business Standard