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Omega Seiki Mobility: Electric Vehicle Factories
Omega Seiki Mobility, a leading electric vehicle (EV) manufacturer in India, has announced its plans to invest $200 million to set up two EV manufacturing facilities in South India. The facilities will focus on producing electric three-wheelers and trucks for the local market.
“We are looking to set up a mega EV production unit here for electric three-wheelers and a new factory for electric commercial vehicles in this region. We are in talks with both Tamil Nadu and Karnataka governments. To fund our expansion, we are in the process of raising about $100 million by a mix of equity and debt.” said Uday Narang Founder and Chairman of Omega Seiki Mobility.
Why was South Targeted by Omega Seiki?
The reason behind the choice of setting up a factory in the Southern part of India was due to the growth potential aspect and the logistics cost optimization.
On a personal note, I believe that most of the competing firms have their factories in the Southern part of India. So to make a strong presence among them, the company has decided to set up a factory. Another reason can be the strong TN electric vehicle policy.
New Factory Output Capacity
The new facilities will enable the company to increase production capacity and offer a wider range of EVs to its customers. Omega Seiki Mobility is also exploring the possibility of setting up an integrated facility for electric three-wheelers and electric trucks in one location.
To fund this expansion, the company is in the process of raising $100 million through a mix of equity and debt, its first fundraiser since commencing operations.
The vision of Omega Seiki Mobility
The company’s strategic vision is to make EVs accessible to the masses and play in niche areas. Omega Seiki Mobility has already introduced an electric three-wheeler targeting mobile kitchen businesses in small towns.
The company plans to focus on the B2B segment for electric two-wheelers and electric three-wheeler passenger segments in Tier 2, 3, and 4 markets.
Factories of Omega in other parts of India
The company has established EV factories at Faridabad and Chakan in Pune.
Future plans of Omega Seiki
The company has decided to launch an electric four-wheeler in the coming times. The vehicle will have a planned range of 180 km/charge with a load capacity of 1 tonne.
Joint Ventures of Omega Seiki
The company has a joint venture with a US-based technology group iM3NY to introduce the company’s cell technology in the local market and manufacture it.
Omega has also a close alliance with South Korea’s Sung Technology which will manufacture six electric vehicle powertrains with a capacity of 7-34kWh. This will help the company to have a good command over the supply chain’s critical parts.
Omega Seiki’s other investments
Earlier in January 2023, the company decided to undertake INR 800 crore on setting up two plants in Haryana and Maharashtra respectively over two years for powertrain and battery manufacturing.
“We will fund partly and we are also in the middle of a major fundraising of USD 100 million but we will put money in and that will be done over the next two years. We believe that the fundraising we are discussing with various partners will close shortly.”
Omega Seiki Mobility’s plans to invest $200 million in two new EV manufacturing facilities in South India is a significant move for the company. This investment will help to increase production capacity and offer a wider range of EVs to customers. The focus on niche areas and B2B segments will enable Omega Seiki Mobility to differentiate itself from other players in the crowded EV market.