- Zapp’s goal of achieving a production capacity of 5,000 units per year in India aligns with its broader target of reaching 25,000 units globally by 2026.
- The company plans to expand into countries like Spain, Italy, Vietnam, and Indonesia in the next phase. They decide to approach capturing diverse markets and establishing a strong international presence.
OUR TAKE
Zapp EV, a UK-based electric vehicle manufacturer, plans to global expansion, with a particular focus on entering the Indian market. The expansion strategy includes establishing local partnerships and adapting its business model to align with India’s unique market dynamics, ensuring a successful entry and sustainable growth in the electric vehicle sector.
-Lia XU, BTW reporter
What happened
Zapp electric vehicles plans to launch its first urban electric two-wheeler called the i300 in the UK as early as next month, followed by Thailand. This company announced its global expansion plan, aiming to establish a strong international market akin to iconic motorcycle brands like Triumph and Royal Enfield. And India will be one of its launchpads.
According to Zapp founder and CEO Swin Chatsuwan, India has immense market potential, because India is the world’s second-largest two-wheeler manufacturer. Zapp accelerated its plans for the country and partnered with Bounce Electric 1 to manufacture and sell the i300 locally, with sales expected to begin in 2025. “We thought India would be phase two for us when we did our research a few years ago, but we made a decision earlier this year that it can’t wait,” Chatsuwan said.
Zapp unveiled the i300 as its first two-wheeler in 2018. but the COVID-19 pandemic halted production and deliveries. Now it’s ready to start delivering the i300.
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Why it’s important
By entering the Indian market, Zapp aims to tap into a massive market with significant potential. India is known for its high volume of two-wheeler sales, making it a strategic move for Zapp to increase its market reach. The launch of the i300 in India will significantly expand Zapp’s total addressable market. This expansion allows Zapp to access a larger customer base and potentially increase its market share in the electric two-wheeler segment.
Zapp’s global expansion signifies its commitment to becoming a comprehensive motorcycle company. Zapp’s long-term vision includes expanding its product lineup and demonstrating its capabilities beyond a single model. This diversification strategy can help Zapp stay competitive and innovative in the evolving electric vehicle market.
However, Zapp needs to optimize its operations and streamline production processes. It may enable Zapp to export vehicles manufactured in India to global markets in the future.
