RR Global-Leading electrical equipment firm enters EV segment

The leading electrical equipment company, RR Global has made an announcement that it will enter into the EV segment with its two electric scooters launch under the firm’s new venture in ‘BGAUSS’.

RR Global will invest around Rs 125 crore in the next three years on the venture which will launch its first two models in August this year. Its electric models are expected to be priced at Rs 50,000 and Rs 60,000.

RR Global-Leading electrical equipment firm 

RR Global Director Hemant Kabra said that “The reason why we entered into this (electric vehicles) space is because of the forward integration we are trying to do. We understand this space, power train – motor controller, cluster, battery, wire harness, lightning, etc and 70 per cent of the components, we do day in and day out. We understand it very well,” He also said that they understand the distribution network, service, performance, This is something natural extension for the company.

The company said they dont have any external investors, the investment of Rs 125 crore to enter into the EV segment is all an internal funding. At present, the company developed its own motor and controller and wire harness internally. But for the first two products, the company will take components from outside India. Currently, it is using the Bosch motor and controller but in next 8 months to 1 year, it will have its own products in its bikes.

He said that the company is developing its own products which are in testing endurance of motor, controller, and wire harness.

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Initially, the two products which will be launched in the Indian market have been designed in China but is customised for the Indian conditions like braking system, headlight, seat, mirror, etc. The company in 9 to 12 months will 100 per cent produce the products in India.

“We are going to start on a rental basis because we are going to invest more and more into product development and marketing setup. Infrastructure, we will develop once we have reached huge volumes. Once you reach volumes like 1 lakh or 1.5 lakh then you can think of setting up your own infrastructure,” Kabra said.

For the EV venture, the company has to rent a facility on its premises which can make 80,000 units annually and scale up to 2.5 lakh per year. The company’s electric scooter will roll out in Hyderabad, Chennai, Bangalore, Pune and Coimbatore initially.

It is also working on a cargo model electric vehicle which is having a high demand after the outbreak of COVID-19. “Previously we thought we would launch it in 2022-2023 but we feel that the need and the demand are coming up so fast for this cargo model. So we have started designing this product from today only and maybe by next year July we should be able to get this product as well,” Kabra added.

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