Starting its journey under the e-mobility adoption, Crayon Motors has made its place as one of the leading electric two-wheeler vehicle manufacturing companies.
With its smart payment solution options, Crayon Motors has expanded its network with an aim to reach a target of 15,000 EV sales by the fiscal year-end.
Planning to integrate IoT-based solutions with its upcoming high-speed scooters, Crayon Motors is ready to offer one of its kind offerings in the EV industry.
In its latest talk with Niloy from EVMechanica, Mayank Jain, Director, Crayon Motors has expressed his views on the localization of EV components and its significance in the Indian industry.
1) The company has been flamboyant in the electric two-wheelers segment for a long now. Hence tell our readers about Crayon Motors as a company and its flagship offering.
Crayon Motors, founded in 2020, currently offers over 3 models in the low-speed electric two-wheeler range. Mileage solutions range from 60kmpc to 170 kmpc in this product line. Two of our most popular scooter models are the Zeez+ and Envy+. We will be launching our high-speed product line very soon. Our electric scooters are designed, developed, and manufactured in Ghaziabad.
Each of our products is designed specifically for Indian roads & weather conditions. Our scooters have features such as digital displays, anti-theft, disc brakes, and GPS monitoring, among others. Furthermore, we offer our customers various financing options from which to choose. This includes funding from banks and various non-banking financial institutions (NBFCs). We are investing heavily in product localization and technological development as part of our expansion plans. We also plant a tree for every scooter sold as part of our green initiative.
2) How the FAME & FAME 2 (Updated in 2019) have spurred the adoption & manufacturing of EVs & hybrid vehicles faster. What have been Crayon Motors’ key marketing strategies for their customers?
The FAME India scheme is unquestionably a step towards incentivising the entire supply chain. The move aims to build a robust ecosystem for EV development while also Incentivizing R&D by Incentivizing those who manufacture in India to help reduce the initial cost of vehicle ownership. FAME has also served as a model for various states to develop their own subsidy schemes to promote electric vehicles. However, the first phase of the scheme ended in March 2019, paving the way for the second phase of the scheme – FAME II. FAME – II is a significant step towards accelerating the adoption and development of EV-friendly infrastructure. It promotes the electrification of public and shared transportation and incentives for 2W, 3W, and 4W electric vehicles. The scheme is expected to boost EV sales by providing a Rs 15,000 subsidy to end users of two-wheeler EVs. In line with this, Crayon Motor’s current vehicle lineup is aimed at Tier 2 and 3 cities. We see a lot of value in these areas “Where India lives” as a company. Customers are cost-conscious but are receptive to the idea of going electric. This market will remain Crayon’s primary focus for the foreseeable future.
3) Tell us about your state-of-the-art production plant facility and its R&D strength?
Our current production facilities cover an area of 40,000 square feet in size. We intend to expand on the same. As a firm, we are constantly working to better understand our client’s needs and objectives. We have made significant R&D investments. In R&D, we focus solely on low-cost, energy-efficient products made in India. For us, prototyping in-house motors and controllers was a huge success. Commercial production for the same will begin soon. We are also working on newer technologies, including collaborations with organisations such as the IIT-Delhi Incubation Centre. These are just a few of Crayon’s various R&D efforts. Additionally, battery development is scheduled for 2023.
4) Further Crayon Motors’ plan to foster the localisation of products?
We are sold on India’s EV dream and are excited to be a part of the journey. All of our scooters are made in India, with the majority of raw materials sourced locally, promoting and supporting the government’s “Make in India” vision. As a company, Crayon is committed to EVs and has established a strong vendor network to ensure an easy and consistent supply of quality spares and accessories. This foundation is made up of companies that have been in the automobile industry for a long time as well as those that are trying to establish themselves and provide high-quality components. We have worked with SMEs to produce EV parts and components. We have made significant investments in R&D to begin manufacturing key components for our vehicles.
5) What challenges are the electric two-wheelers segment currently facing and your recommendations to the Government?
From components to vehicles, the EV ecosystem has grown largely through the startup/SME ecosystem. The support from original equipment manufacturers (OEMs) has just recently begun.
We are now seeing the entry/expansion of the legacy players from the ICE industry. With their financial resources, years of expertise, and brand value, these industry stalwarts provide a challenge moving ahead. While this will definitely be beneficial in the product life cycle, the entry of such players will present challenges for SMEs/startups. The market is ripe for collaborations and alliances. To create a full and resilient ecosystem, start-ups must collaborate and assist one another, to build a complete and robust ecosystem which will be essential for their success.
In terms of recommendations – implementing a comprehensive framework for EVs in the country is the need of the hour. Various laws and regulations within the EV framework should encourage quicker adoption of EVs in the country by providing an inexpensive, dependable, safe, and accessible infrastructure and environment. People are already transitioning to electric vehicles, but the infrastructure is still needed. Various national and state government EV policies must control and promote research development, charging infrastructure, and appropriate skill development techniques. We require an EV policy that will contribute to creating a favourable environment for the transition from internal combustion engines to EVs. We require effective policies that focus on EV research and development. There is also a lot of talk about FAME being phased out after March 2024, with only PLI remaining. As an industry built on startups and SMEs, the government must evaluate this and develop a framework for the inclusion of these businesses.
6) Nowadays Government, as well as Private Education bodies are bringing academics with different courses addressing the talent pool of this booming sector. Do you find a talent gap in this industry?
EVs, while similar to traditional mobility, are also distinct. Product development, components, and working on everything will necessitate either upskilling or enrollment in new courses. This step for new courses will be critical to the overall adoption of EVs. This will also be necessary for India as it strives to become a key player in the global EV story.
7) A typical Li-ion battery will be able to handle 300 to 500 charge/discharge cycles before diminishing in capacity. For an average electric scooter, this is 3000 to 10,000 miles. This can mentor a noticeable drop of 10 to 20% that will continue to get worse. Do you think limited battery life is challenging for the Indian electric two-wheelers segment?
The average distance travelled by two-wheelers in the country is about 30 kilometres. The battery’s nature is to reduce backup (as is the case with any electronic device). Something we’ve come to accept for other items like phones, among others. While this may appear to be a challenge, most vehicles on the road today still offer much higher mileage than the national average. Furthermore, even after battery replacement, the replacement cost and overall economics for EVs remain favourable. As an industry, we will undoubtedly improve the battery lifecycle to strengthen the case for EVs.
8) What is the USP of the company in a scenario where other companies are also bidding in this segment?
We are interested in and enthusiastic about working together. Such an approach will aid in lowering the development cost burden on our products, and thus on our customers. Needless to say, we are entering an era in which new developments must be faster, reducing the overall time required to recover development costs. Our primary focus remains in the low and mid-range segments. In keeping with our goal of e-mobility for all,
9) Ahead plans of the company and key launches expected in 2023.
Our primary goal is to improve results and efficiency while lowering prices. Each year, we hope to introduce three to four new models to the market. At the same time, we want to focus on introducing technology that benefits the customer while remaining affordable. We are concentrating on producing Motors, Controllers, and Batteries, which are critical to EVs and form the product’s heart and soul. Our products will also be available for use by other manufacturers.
We intend to invest more than Rs. 300 crores in the first phase in technological, product, and infrastructure development.
