Gensol Engineering to pick up majority stake in US-based EV manufacturing startup; Stock hits 52-week high

8 Jul 2022 , 09:17 AM

Gensol Engineering Limited has 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 Rs500-600 crore for FY-24.

As per the filing, 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.’’

At around 9:17 AM, Gensol  Engineering hit 52-week high at Rs633.75 per share on Friday’s early morning trade on the BSE.