India’s top EV startups to watch in 2023

The race for promoting electric vehicles (EVs) didn’t exactly begin this year, but it sure made its first foray into the mainstream through 2022. This is the year that saw progress being made on the policy front to promote EVs and also create frameworks for battery swapping. On the product front, while there are clearly more EVs on the road thanks to an influx of two-wheelers, the latter also faced plenty of flak and concerns amid a slew of EV batteries catching fire. With the industry standing at such an inflection point, here’s looking at the biggest EV companies in India to watch out for next year. 

Ola Electric 

Arguably one of the most noticeable EV brands in India, Ola Electric faced its own share of controversies — with regards to quality control and monitoring on its EV two-wheelers launched this year. However, the company has emerged as one of the most prominent in the EV space, and has bold plans for 2023. 

As announced by chief executive Bhavish Aggarwal earlier this month, Ola Electric plans to unveil its own Lithium-ion battery plant in 2023. It also aims to compete with mainstream automotive firms such as Tata Motors and Mahindra & Mahindra by launching commercial three-wheeler and four-wheeler EVs in the coming year, in a bid to establish its presence in multiple EV categories. 

The brand also appears to have plenty of concerns — in May this year, Mint reported that how Ola Electric happens to be targeting voices against the brand through concerted social media channels. As the brand grows in stature, it remains to be seen how its reported issues are handled as well. 

Ather Energy 

In comparison to many others, Ather Energy has had a relatively quiet year. However, that’s not to say that the company hasn’t been in action. In November, Autocar Pro reported that Ather Energy recorded its best-ever month in terms of two-wheeler sales, after launching a new rendition of its flagship EV lineup in July. 

Also in October, Ather raked in a $50 million funding round, and also opened a new production plant in Hosur. Earlier this month, a Mint report said that Ather is presently targeting a production rate of 20,000 EVs from its plants by March next year, as it seeks to become a mainstream EV brand in the country, and expand its presence to more cities. 

The company has been hailed for its overall product quality, its fast charging setup, and more, and it remains to be seen how the next year plays out for it. 

Euler 

One of the biggest names in the commercial EV space right now, Euler Motors raised a $60 million funding round from Singapore sovereign fund, GIC, in October this year. The firm has so far built commercial three-wheelers, with features such as fast charging for 50km deliveries in 15 minutes of charge, and a payload capacity of nearly 700kg. 

Going forward, the company seeks to build up its production capacity to 1,000 EVs every month, which would make it a mainstream name alongside Tata Motors and M&M next year. However, to do that, Euler will need to clear its backlog of 9,000 EVs that it has at the moment, Forbes reported. Its present capacity stands at 100 EVs per month. 

Log9 Materials 

Bengaluru-based EV battery research, development and manufacturing firm, Log9 Materials, is seemingly set to enter 2023 with plans to delve into the four-wheeler EV battery space. A report by Moneycontrol said that the company, which presently churns out up to 10,000 EV batteries based on its own, high-performance battery formula, has plans for a ₹2,350 crore capital expenditure outlay by FY23 — a sizeable part of which will come in CY23 as well. 

These, according to Akshay Singhal, founder of Log9 Materials, could include a ₹200 crore outlay to expand its battery pack assembly facility, and a further ₹150 crore to build a cell manufacturing facility. Going forward, it could prove to be one of the most important startups in the EV space in terms of the overall industry, given that 2023 could be the year that the EV industry looks to consolidate in terms of interoperability of technologies — thus bringing battery-tech firms such as Log9 into the fore. 

Log9, to be sure, already works with brands such as Hero Electric, and Omega Seiki. 

Hero Electric 

Hero Electric most likely has the most expansive portfolio of EV products in the two-wheeler space, and given its experience, is likely to have a significant role to play in India’s EV industry next year. 

In November, the firm confirmed a ₹2,500 crore investment to build additional manufacturing capacity of 4 million EVs per year by FY26, a part of which has already become operational. Through 2023, Hero’s manufacturing capacity is expected to increase further — thus giving it the all-important aspect of scale and cost balancing that many other startups struggle with. 

BluSmart 

One of India’s most popular EV ride hailing startup, BluSmart raised $25 million as part of a continued Series A funding round in May this year. With this round, the company sought to expand its fleet to at least 5,000 by end-2022 — and move all the way up to 1 lakh EV cabs by CY25. 

This could make 2023 a key year for BluSmart, in terms of expanding its presence across more cities, and increasing the number of cars in circulation. The firm will likely face a challenge from established cab operators such as Olacabs and Uber, but it will be interesting to see if the homegrown EV cab service can capitalise on getting a headstart in the EV ride-sharing industry in India, before it takes the first steps towards maturity in 2023. 

Bounce Mobility 

Bounce Mobility was heavily billed as a major prospect last year, but things do not seem to have gone smoothly. In November this year, YourStory reported that after having raised over $200 million, Bounce was looking at a reduced valuation to raise $30 million in its next funding round — an amount significantly below the brand’s expectations. 

According to reports, the company has been looking to pivot from being an EV maker to being a developer of a battery swapping network across India. Whether it would succeed or struggle now remains to be seen next year, for what is one of India’s most prominent and highly-funded EV startups as of now.