Zapp EV: Setting its Sights on India’s Electric Two-Wheeler Market
A Global Expansion Strategy
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Zapp Electrical Automobiles, a London-based company specializing in electric two-wheelers, is aiming for global domination. After launching their flagship model, the i300, in the UK next month and Thailand shortly after, Zapp has set its sights on India as a key launchpad for international expansion. This strategic move comes after founder and CEO Swin Chatsuwan recognized India’s immense potential within the electric two-wheeler market.
India boasts millions of two-wheeler sales annually, making it the world’s most populous nation with a thriving two-wheeler industry, second only to China in production. Recognizing this opportunity, Zapp has accelerated its plans for India, aiming to tap into this massive market and solidify its position as a global leader in electric mobility.
Partnering with Bounce Electric 1
To facilitate its entry into the Indian market, Zapp has partnered with Bounce Electric 1, a leading Indian electric two-wheeler manufacturer. This strategic alliance will see Bounce Electric 1 manufacture and distribute the i300 within India. Following the completion of homologation procedures, sales are expected to commence in 2025.
Zapp aims for an initial production capacity of 5,000 units per year in India, contributing to its broader global target of 25,000 units by 2026. This expansion will significantly increase Zapp’s total addressable market (TAM) from 60 million units annually to 30 million units within the first phase of its market debut.
Targeting a Niche Market
While Indian manufacturers like Ola Electric, TVS Motor, and Ather Energy dominate the budget-friendly electric two-wheeler segment with prices ranging from $1,000 to $1,800, Zapp’s i300 will cater to a different market segment. The i300 is positioned as a premium offering, debuting in Europe at a base price of $7,590 (excluding taxes).
In India, the pricing strategy for the i300 remains under consideration, but Chatsuwan has indicated that it will fall between 500,000 and one million rupees. This positioning allows Zapp to compete with established premium brands like BMW, particularly their CE 02 and CE 04 step-through electric scooters.
Learning from India’s Supply Chain
Beyond immediate sales, Zapp’s foray into the Indian market will provide valuable insights into the country’s robust supply chain network. This knowledge will be instrumental in facilitating future exports of vehicles manufactured in India to global markets.
The i300: A Step-Through Design for Urban Mobility
Zapp’s i300, unveiled in 2018, features a distinctive step-through design that prioritizes ease of use and accessibility. This urban-focused model is designed to navigate the complexities of city traffic with agility and efficiency.
The Trendy Rise of Zapp: A New Era in Electric Motorcycles
A Bold Debut and a Pandemic Pause
Zapp burst onto the scene in 2018 with the i300, its first foray into the world of electric two-wheelers. This innovative motorcycle boasts an aerospace-grade alloy load-bearing exoskeleton and a chrome-moly metal underbone design, setting it apart from traditional models. The i300 is powered by an air-cooled electrical motor with a peak power output of 14kW and features two removable batteries, each with a substantial 720Wh capacity.
Pre-orders for the i300 opened shortly after its unveiling, with Zapp requesting a reservation fee of 100 euros. The company promised deliveries to begin in the fourth quarter of 2019. However, the global COVID-19 pandemic unfortunately disrupted manufacturing and delivery schedules, causing a temporary setback for Zapp’s ambitious plans.
A Global Expansion and a Focus on Customization
Despite the challenges, Zapp is now poised to resume deliveries of the i300 in the UK within the next few weeks. The company also plans to launch sales in Thailand this year through a facility in Bangkok. This expansion marks the beginning of Zapp’s ambitious global strategy.
Zapp CEO Chatsuwan has stated that the company aims to become a “full bike company,” offering a diverse range of electric motorcycles beyond the i300. He emphasized their commitment to providing customers with a wide array of personalization options and accessories for the i300, allowing them to tailor their bikes to their individual preferences. Zapp currently offers four distinct variations of the i300 and allows customization of color and wheel design. Additional accessories, such as hidden storage and quick chargers, are also available.
Zapp’s future plans include entering Spain, Italy, Vietnam, and Indonesia in phase two, followed by expansion into markets in the Middle East and South America over time. Chatsuwan envisions Zapp becoming a modern-day equivalent of iconic motorcycle brands like Triumph, Royal Enfield, and Norton.
