Gensol Engineering Limited ("The Company / Gensol") has today, 7th July 2022, signed a termsheet to pick up majority stake in a US-based electric vehicle manufacturing startup. The investment is intended to accelerate Gensol's plan to deliver a robust domestically manufactured EV in India. With this deal Gensol foresees an increment in revenue by INR 500-600Cr for FY-24.
Gensol aims to set up its R&D center for technology development and a start of production (SOP) in the first quarter of 2023 in Pune, India with a capacity of 12000 cars / year in the first phase. The company is also hiring a team of more than 150 automobile engineers & designers for this venture.
Piquantly, Gensol aims to take this EV market to the next level of technological advancement and serve a wide variety of the customers' mobility needs - passenger, fleet and cargo - with different designs. This domestically produced 'Make in India' vehicles will deliver a cruising range of around 200 km per charge and can be fully charged in just 2 hours.
Commenting on the proposed investment, Anmol Singh Jaggi, Managing Director of Gensol said "Hatchbacks form 46% of the cars sold in India and the total market size of EV Hatchbacks is $9Billion.The Indian EV car segment is set to grow at 105% till 2030 reaching 2Million annual sales volume. We propose to invest in this US based EV startup with a very positive outlook to serve India's need for affordable and efficient EVs. With the rising fuel prices, our vision is to provide a solution that reduces fuels costsby 5x. This is another milestone on our journey to make deeper cuts in carbon emissions and higher employment generation. The government push along with the ever-increasing demand has motivated us to set up the production of EV in India. We shall disclose the details about our electriccar very soon."
Importantly, India is committed towards a climate-motivated push to traverse its difficult path of decarbonization. Therefore, EV is one of the front-runners for government action, as mass consumer transport electrification is not only a necessary path to net-zero but also can significantly boost national economies. Keeping in mind that the transport sector is one of the largest sources of greenhouse gas (GHG) emissions, so its progress will be pivotal for facing the formidable climate change challenge.
What is more, this acquisition can prove to be a very momentous change for Gensol, as it will help pump up its topline to the tune of 500-600Cr during FY-24.
Shares of Gensol Engineering Ltd was last trading in BSE at Rs. 574.90 as compared to the previous close of Rs. 569.15. The total number of shares traded during the day was 40964 in over 67 trades.
The stock hit an intraday high of Rs. 580.00 and intraday low of 562.50. The net turnover during the day was Rs. 23362886.00.