About Victory Electric Vehicles International Limited

Business Overview

Victory Electric Vehicles International Limited specializes in the manufacturing of electric vehicles, including E-rickshaws, E-Cargo/Loader E-Rickshaws, and Electric Scooters. The portfolio also features customized E-Three Wheelers designed for specific applications such as Food Carts and Ice Cream Carts. The business is focused on leveraging the growing electrification of mobility in India, with future plans to explore export opportunities in select international markets.

Vision: To foster a culture of excellence, integrity, honesty, and social responsibility, enabling collaboration and growth among employees, customers, and partners.

Mission: To transform the transportation industry by promoting eco-friendly, efficient electric mobility solutions, and offering a diverse range of EVs and services tailored for passenger transport, cargo movement, tourism, and more.

As of December 31, 2024 the Company had 110 permanent employees. The Banker to the Company is HDFC Bank

Industry Analysis

Overview of India's EV Sector

India's electric vehicle (EV) industry is undergoing a transformative phase, propelled by strong government support, environmental imperatives, and rapid technological advancements. Key policy initiatives, notably the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, are accelerating EV penetration and reshaping India's mobility landscape towards sustainability.

Executive Summary

• Global Outlook: The global EV market stood at USD 255.54 billion in 2023 and is projected to soar to USD 2,108.80 billion by 2033, registering a CAGR of 23.42% between 2024 and 2033.

• Indian EV Market Growth: India's EV market is forecasted to expand from USD 3.21 billion in 2022 to USD 113.99 billion by 2029, exhibiting an exceptional CAGR of 66.52%, according to Fortune Business Insights.

• Surge in Sales: EV sales in India rose by 49.25% in 2023, reaching 1.52 million units. The sector’s growth is being driven by rising fuel prices, increased personal mobility demand, and favorable policies.

• EV Adoption Targets (by 2030):

  • 30% of private cars

  • 70% of commercial vehicles

  • 40% of buses

  • 80% of two- and three-wheelers
    These targets represent an estimated 80 million EVs on Indian roads, as per CII projections.

• EV Battery Market: Expected to grow from USD 16.77 billion in 2023 to USD 27.70 billion by 2028, signaling a booming ecosystem.

• Startup Ecosystem: With over 700 EV startups in India, the sector exhibits significant entrepreneurial activity.

• Segment Highlights:

  • E2Ws (Electric Two-Wheelers) dominated EV volumes in 2023, accounting for 56% of total sales and are expected to exceed 1 million units in 2024.

  • E3Ws (Electric Three-Wheelers), especially in cargo, are gaining traction due to last-mile delivery demand and operating cost benefits.

  • E4Ws (Electric Four-Wheelers) saw strong post-pandemic growth, fueled by rising fuel prices and demand for personal vehicles.

• OEM Expansion: Several Original Equipment Manufacturers (OEMs) are now extending reach into rural markets, unlocking new customer bases.

State-Wise Progress and Policies

• Maharashtra: Leading in two-wheeler EV sales in FY24, driven by rising incomes and progressive state policies. Target: 10% of all new vehicle registrations to be EVs by Dec 2025.

• Karnataka: Aims for 100% electrification of 3- and 4-wheeler cargo vehicles by 2030.

EV Infrastructure Development

• As of February 2024, India has 12,146 public EV charging stations, with Maharashtra leading, followed by Delhi and others.

• The CII emphasizes the need for 1.32 million public charging stations by 2030, implying over 400,000 installations annually to support growth targets.

• Under FAME India Phase II, the Ministry of Heavy Industries approved the allocation of 7,432 charging stations to three major Oil Marketing Companies.

• Hyundai Motor India is expanding its ultra-fast charging network in cities like Mumbai, Pune, Hyderabad, Gurugram, and Bangalore, along key highways.

Market Dynamics and Trends

• The EV transition is being driven by a combination of policy support, environmental consciousness, and cost pressures on conventional fuels.

• E2W sales skyrocketed from 143,000 units in 2021 to over 859,000 units in 2023, underscoring consumer shift towards cleaner and cost-efficient mobility.

• The e-commerce boom has further boosted the demand for e3Ws in cargo, which operate at 55% lower costs compared to traditional autos.

• EV registrations in India now account for 6.4% of all vehicle sales, indicating mainstream momentum.

• In January 2024, two-wheeler EV registrations reached 81,344 units, with Ola Electric leading at 32,000 units, followed by TVS Motor with 15,181 units.

This strong trajectory highlights the EV sector as a pivotal force in India’s journey toward clean mobility, offering lucrative opportunities for manufacturers, suppliers, and investors alike

Business Strengths

1. Widespread Geographical Presence
Victory Electric Vehicles International Limited operates across 12 Indian states, including Uttar Pradesh, Rajasthan, Haryana, Bihar, Madhya Pradesh, Jharkhand, Delhi, Chandigarh, Uttarakhand, Jammu & Kashmir, Gujarat, and Maharashtra, with an established dealer network in each state, reinforcing its focus on sustainable urban and rural mobility through E-Rickshaws.

2. Experienced Leadership with Strategic Market Acumen
Led by a senior management team with over a decade of industry experience, the company benefits from deep market insights and proven execution capabilities. This enables effective market opportunity identification and customized product development, supporting long-term growth and profitability.

3. Consistent Financial Performance
The company has delivered steady profitability, including during the COVID-19 pandemic, with PAT of ₹96.83 Lakhs (Dec 2024 stub period), ₹489.22 Lakhs (FY24), ₹78.80 Lakhs (FY23), and ₹64.55 Lakhs (FY22). Strong EBITDA margins were maintained through process optimization, production efficiency, and strategic planning, driving cost-effective, customer-centric operations

Business Strategies

1) Capacity Expansion Without Land Acquisition
Manufacturing capacity to be nearly doubled by constructing an additional floor on the existing facility, eliminating the need for land acquisition or major capital expenditure.

2) Pan-India Geographical Expansion
Targeting market entry into multiple new states to boost revenue, diversify the customer base, and achieve nationwide presence.

• L3 Range: Expansion planned in remaining states including Punjab, West Bengal, Karnataka, Tamil Nadu, Telangana, Andhra Pradesh, Assam, Kerala, and Northeastern regions.

• L5 Auto Range: Expansion focused on similar regions excluding Tamil Nadu and Assam.

3) Product Portfolio Diversification
Plans underway to introduce new models across all segments—Passenger EV 3-wheelers, Loading EV 3-wheelers, and 2-wheelers—leveraging existing L3 and L5 series to tap into EV market growth.

4) Distributed Warehousing Network
New warehouses to be established at strategic locations to reduce delivery time and logistics cost for smaller dealers, improving supply chain efficiency.

5) Charging Infrastructure Development
Charging stations to be developed across India to enhance accessibility and convenience for EV users

Business Risk Factors and Concerns

1) Product Development and Scaling Risks
Future growth relies on the successful development, timely production, and large-scale delivery of new EV models. This process demands significant investment in R&D, supply chain optimization, and skilled human capital, despite limited prior experience. Failure to manage costs or meet quality and innovation benchmarks could hinder competitiveness.

2) Customer Acquisition and After-Sales Support
Sustained success depends on attracting and retaining EV buyers through effective product design, brand development, service quality, and marketing reach. Inadequate servicing infrastructure, limited roadside assistance, or weak customer engagement may adversely affect customer loyalty and sales performance.

3) Geographic Revenue Concentration
A major share of revenue comes from a few states—Uttar Pradesh, Haryana, Bihar, Delhi, and Madhya Pradesh. Lack of long-term dealer agreements and any shifts in customer preferences or state regulations in these regions could significantly disrupt revenue flow.

Victory Electric Vehicles International faces key risks related to scaling new EV production, ensuring strong customer and service networks, and geographic revenue concentration, which could impact its operational stability and future growth.