Call it diversifying or futuristic business planning, Indian smartphone maker Micromax is making moves to enter into segments like electric vehicles. Reports suggest that with the mobile phones market becoming a crowded place, Micromax is now looking at other business segments.
Besides electric vehicles, the company also plans to make lithium batteries meant to be used in 2-wheelers and 3-wheelers.
Sources indicate that the company has already made considerable progress in this space and its batteries have received approvals and certification from designated authorities. In some of Indiaâ€™s major cities such as Delhi, e-rickshaws are being run to counter the high pollution levels. Micromaxâ€™ batteries for these vehicles are ready for commercial launch.
On the progress made in the case of the electric vehicles, the company says these are still in the preliminary stages with discussions being held with possible technology co-operation. Here again, the focus may be on the 2- and 3-wheelers. Micromax has also factored in the demand potential from ride sharing operators like Uber and Ola who have already made public their plans to expand their business in urban mobility beyond taxis and e-vehicles can play a critical role in their scheme of things.
The government is seen to be encouraging the sector and there may be subsidies for both the manufacturers and buyers making it easier to market the products leaving only the manufacturing to be taken care of. The relevant scheme floated by the government is called Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME).
It cannot be denied that the mobile phone business is seeing severe competition. At another level, there is the online/offline fight going on and typical Indian companies cannot afford to undercut on prices to compete with the Chinese brands which dump their phones in huge quantities at low prices.
In light of this, there is surely an opportunity for Micromax to enter into new sectors such as electric vehicles and vehicles.