Omega Seiki Mobility (OSM), a subsidiary of the Anglian Omega Group, recently launched its new e3W, the Stream, targetting the rural market.
Based on an updated Rage platform, the product marks the company’s entry into the passenger e3W segment.
Speaking to Mobility Outlook, Uday Narang, Founder and Chairman, Omega Seiki Mobility, said that a total of $15 million has been invested in developing the platform. “We see this product specifically for the rural markets including places like Madurai, Rohtak, Sonipat, Lucknow, parts of Jammu and Kashmir,” he said.
Going forward, Narang confirmed that on the same platform, the company plans to bring another passenger e3W by the next month with smaller dimensions. To be called the ‘Stream City,’ the product would primarily target the metro cities. OSM also plans to bring a slew of L-5 cargo vehicles based on the Stream platform with different body styles and charging technologies, he confirmed.
With the Stream, the company aims to up its market share to 15% in the first year with sales of 40,000 units in FY23. Besides the Indian market, the Stream is said to be sold across other international markets. The chairman averred that OSM plans to launch the vehicle in African nations, including Egypt, South Africa, Tanzania, Ghana, and a few ASEAN countries, including Indonesia, the Philippines and Vietnam.
“We want to go into Latin America, in Colombia, Peru, Chile, and we are working on the rural European market as well,” he noted. Moreover, the company is also testing its ground with the L-3 category as it showcased two of the upcoming L-3 passenger e3Ws.
Based on a new platform developed by EDM Technologies with an investment of $5 million, Narang confirmed that the platform will support multiple variants in the L-3 category, including passenger and cargo segments.
Apart from the e3W segment, the company is also focusing on taking a sizable market share in the e2W segment. The company currently has two e2W to offer, the Fiare and the Zoro. The chairman stated that OSM has closed a deal with a Korean brand to bring their e2Ws to the country.
Under testing for the last four years, the products were initially planned to be launched last year. However, due to the changes in the demographic and infrastructure between the two countries, the product had to undergo major changes.
He added that the new products will feature a better range of 120 kms over the 80kms provided in Korea. Alongside the ride height, the battery size and the storage have also been increased in the Indian alteration.
Besides these products, OSM is also working on new e-trucks and e-buses based on the M1KA platform, along with an e-tractor.
The founder said that about $300 million will be invested into the e-tractor project, and 30% of the project has already been completed with a scheduled launch in mid-2023, while with the e-Trucks, he added that OSM has signed a deal to export to the US.
Moreover, the vehicle maker also plans to update its ongoing e3W range, the Rage, by July 2022. Dubbed Rage 2.0, the new products will feature a more aerodynamic shape with extended range, more telematics, IP67 motors and batteries, the chairman confirmed. He added that the new battery packs will feature US-made cells rather than Chinese cells.
Expansion Beyond Product Portfolio
Narang noted that the company plans to invest $500 million in the next five years, out of which $100 million is planned for FY23. As a part of that investment, the company plans to set up eight more facilities across India during FY23, starting this month. OSM currently has two facilities in Faridabad, Haryana.
With the acquisition of the Korean e2W company, OSM has also got the rights to its patents, technologies and manufacturing facility. Narang said the company plans to move the entire facility to Faridabad within July 2022.
The vehicle maker also plans to set up its plant in Chakan, Pune, within this month, while the Chennai plant will be up and running by July end, he confirmed. The company aims for a hub and spoke model with ten facilities. He added that the decision to have separate plants across India is to reduce the cost of transportation. While on the dealership side, the company plans to expand its network from 100 to 300 by the end of FY23. Besides exclusive dealerships, the vehicle maker has also tied up with some of the multi-brand dealership networks, including Byjli. Narang said that the company signed an MoU with another multi-brand dealership network, Naya Gadi in Agra, to increase its presence in the state.
Speaking of R&D, he said that the company currently has four R&D centres, including two in India and one each in Thailand and Korea.
Going forward, the founder confirmed that the vehicle maker is in the works to add another R&D centre in Turkey dedicated to the European market.
Ecosystem In Making
Apart from focusing on product development, OSM also focuses on creating an ecosystem around its products. Starting with charging infrastructure development, the company recently announced its partnerships with Log9Materials and SUN Mobility for fast charging and battery swap networks, respectively.
Narang said that in the future, the vehicle maker will also introduce its network of chargers within the next few months. “We are instituting our first charging infrastructure at the Indira Gandhi University for women. And we will now roll out that across India,” he added.
While on the component side, the founder said that the company, with a partnership with a Korean brand, has formed OSM Jason Technologies and plans to bring out IP67-rated motors within FY23, which will be 35% more efficient than the existing motors in India.
Recently, the company partnered with the Egyptian component maker EVR Motors to manufacture electric motors in India. The JV aims to build a new lightweight, compact Trapezoidal Stator Radial Flux (TSRF) motor that can be used in a range of vehicles.
While on the battery side, he said that initially, the company aims to import cells from its partner company in the US and make battery packs in India within this fiscal. While in the long term, the company is working on setting up a giga factory in India to manufacture cells derived from the American cell maker.
Business Models
The company recently announced some leasing partnerships with Grip invest. Under the partnership, Grip will finance 1,000 units of electric three-wheelers Rage+ Rapid of Omega Seiki Mobility.
Apart from this, the vehicle maker has partnered with One FD and Mahindra Finance and a separate entity by the name Anglian Finance, which Narang owns. Altogether, the company has completed INR 20 crore of financing so far, the founder confirmed.
Currently, around 20% of the company’s revenues come from leasing. However, Naranag stated that he aims to take this to 40% within FY23, while the ultimate goal is to have a 50-50 revenue share between leasing and outright purchase. Going forward, he aims to set up another entity under which funds for over INR 200 crore will be utilised on financing vehicles for the entire country. “It'll be a pilot fund, and then we will grow it,” Narang concluded.