About Tunwal E-Motors Limited

Tunwal E-Motors Ltd, an upcoming force in the electric vehicle (EV) manufacturing sector, stands at the forefront of India's drive towards sustainable and eco-friendly mobility solutions. Established in 2018, the company has rapidly evolved to become a significant player in the market, specializing in the design, development, manufacturing, and distribution of high-quality electric two-wheelers. 

With new age production facility strategically located in Palsana, Rajasthan, Tunwal E-Motors leverages efficient manufacturing/assembly processes to meet the burgeoning demand for electric scooters. The company is registered under the Bureau of Indian Standards and SAE International, USA has confirmed World Manufacturer identifier (WMI) code for their company.

Committed to addressing the urgent need for electric mobility solutions in India, Tunwal E-Motors focuses on delivering user friendly, technologically advanced and affordable electric scooters. The company's mission extends beyond product excellence, aiming to contribute to a cleaner and more sustainable future for the nation and also develop further electric based mobility solutions.

Tunwal E-Motors operates with a streamlined organizational hierarchy, featuring key departments that drive various facets of its operations. The dealer development department within the sales department plays a crucial role in expanding the dealership network, fostering strong relationships, and providing essential support and training. Human Resources (HR) takes charge of recruitment, training, and organizational culture development, sustaining a talented and motivated workforce. Their company is establishing a Research and Development Department which will be required for furture innovation and continuously enhancing existing EV products with technology. Lastly, the Service and Warranty Department completes the cycle, delivering a positive post-purchase experience through comprehensive after-sales service and support, including maintenance, repairs, and warranty claims. This well-coordinated structure positions Tunwal E-Motors for success in the dynamic electric vehicle landscape. 

ELECTRIC TWO-WHEELER MARKET IN INDIA
India is one of the world's fastest-growing markets for Electric Two-Wheelers (E2Ws). The two-wheeler segment dominates the Indian automobile market, accounting for more than 70% of all registered vehicles. E2Ws are a convenient and efficient mode of transportation for short-distance travel, especially in cities. In India, the two-wheeler segment accounts for more than 50% of all petrol transactions. Two-wheelers are utilised in commercial applications such as logistics fleets for food and groceries, parcel and courier services, and passenger transport-related services. Twowheelers that can effectively negotiate traffic are also being tested for first and last-mile connection via shared trips and bike taxi services. According to a study, electric two-wheeler sales penetration in India might surpass 80% by 2030. 

The below line graph depicts the registered E2W sales between December 2021 to March 2023. It clearly illustrates the rising trajectory of E2W penetration in the Indian economy. In the month of March 2023, 86,067 registered E2W sales were recorded by the Society of Manufacturers of Electric Vehicles (SMEV).

Over the last ten years, India has emerged as one of the world's most favoured places for producing high-quality automotive components and automobiles of all types, closing the gap with numerous established countries in the process. Due to the relative cost and ease of two-wheelers, they have historically led in terms of growth and penetration among the major vehicle categories in India. A high degree of market penetration for electric-powered two-wheelers should be achieved as EVs represent the future of the mobility sector. Collectively, such government interventions have the potential to trigger a paradigm shift in the ecosystem that would increase the use of renewable energy in the domestic industry and increase consumer adoption of new and novel technology.

Comparison of Electric Two-Wheeler and Internal Combustion Engine (ICE) Two-Wheeler
Higher initial E2W costs may be attributed to the cost of the battery and other components, but the lower maintenance and fuel costs can outweigh the higher initial cost over time. Furthermore, E2W spare components are less expensive than those for regular ICE automobiles. 

We are majorly selling low speed EV two wheelers which are neither registered under Vahan nor require a number as per motor vehicle act and thus there is no authentic data or reliable data to showcase the growth in the industry for this particular segment.

EVs are simpler : EVs have fewer components and live 3.5 times longer than ICE vehicles. 
EVS are more powerful : EVs can offer full torque at zero RPM, whereas ICE vehicles can only operate in a certain RPM range. Thus, at lower speeds, EVS are more powerful. 
EVs have begun to make economic sense : Electric vehicles have a significant higher upfront cost, as compared to ICE vehicles, largely on account of battery costs. On the other hand, the operating cost for an EV are much lower. Thus, total cost of ownership (TCO) is an important economic comparison between ICE vehicles and EVs.

Government Initiatives

Details of the new EV policy

• The Union Government has approved an E Vehicle Policy to promote India as a manufacturing destination for EVs. The policy is designed to attract investments in the EV space by reputed global EV manufacturers.
• The policy entails a minimum investment of INR 41500 Mn (~USD 500 Mn) in India by setting up local manufacturing for EVs within 3 years. There is no cap on maximum investment.
• The policy also specifies the required Domestic value addition (DVA) with a localization level of 250 to be achieved by the 3rd year and 500 by the 5th year.
• Under the policy, a customs duty of 15 0 would be applicable on vehicles of minimum CIF (Insurance, Freight) value of USD 35000 (~INR 29 Mn) and above for a total period of 5 years subject to the manufacturer setting up manufacturing facilities in India within 3 years.
• The policy paves the way for global EV OEMs to enter the Indian market, which was difficult earlier due to high import duties of 700 or 1000 depending on the vehicle’s value.
• The duty foregone on the total number of EVs allowed for import would be limited to the investment made or INR 64840 Mn (equal to incentive under the PLI scheme) whichever is lower.
• The policy has capped the number of EVs that can be imported by a company over the policy tenure to a total of 40 000 at the rate of not more than 8 000 per year, if the investment is USD 800 Mn (~INR 66 400 Mn) or more The carryover of unutilized annual import limits would be permitted.
• The company will have to produce a bank guarantee to ensure timely adherence to the requirements The Bank guarantee will be invoked in case of non-achievement of the DVA and minimum investment criteria defined under the scheme guidelines.

TUNWAL E-MOTORS LIMITED STRENGTHS
1. Experienced Leadership Backed by a Professional Team
2. Consistent Financial Performance
3. A Wide Product Portfolio
4. Well-Developed and Expanding Dealer Network
5. Commitment to Environment Sustainability

TUNWAL E-MOTORS LIMITED STRATEGIES
1. Enhance Nationwide Presence
2. New EV Models Introduction
3. Invest in R&D to advance our technological capabilities and optimize costs
4. Global Market Exploration through Exports
5. Optimise capacity utilization

TUNWAL E-MOTORS LIMITED RISK FACTORS & CONCERNS
1. Their success depends on their ability to successfully develop, introduce, manufacture, market and deliver new electric vehicle models of high quality on schedule and on a large scale.
2. The company is dependent on few international suppliers for purchase of raw materials.
3. They depend on their distributors and dealers for their revenue.
4. They are dependent on third party logistics for the transportation and timely delivery of their raw materials and finished products to customers.
5. They currently derive their revenue solely from the sale of electric vehicle scooter models.
6. Inadequate access to public charging stations for consumers could materially and adversely affect demand for their electric vehicles.
7. They are majorly selling low speed EV two wheelers which are neither registered under Vahan nor require a number as per motor vehicle act and thus there is no authentic data or reliable data to showcase the growth in the industry for this particular segment.
8. Demand for used e-vehicles is subject to seasonal fluctuations.
9. Their electric vehicles are subject to motor vehicle standards as laid down by the Automotive Research Association of India. 
10. If electric vehicle owners customize their electric vehicles or change the charging infrastructure with aftermarket products, the electric vehicle may not operate properly which could harm the business.