With modest sales, expansion plans, and bets on future tech, Zen Mobility has to focus on execution to ensure that its 'micro pod' vision scales.
25 Jul 2025 | 1035 Views | By Yukta Mudgal
India’s electric cargo three-wheeler market is expanding rapidly, dominated by established players and volumedriven startups. Yet, in this crowded landscape, Zen Mobility is positioning itself as a challenger brand with a focused proposition. Rather than competing head-on in the high-volume race, the company is targeting a specific gap in urban ...
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India’s electric cargo three-wheeler market is expanding rapidly, dominated by established players and volumedriven startups. Yet, in this crowded landscape, Zen Mobility is positioning itself as a challenger brand with a focused proposition. Rather than competing head-on in the high-volume race, the company is targeting a specific gap in urban last-mile delivery with its Micro Pod—a compact, modular electric vehicle designed for regulated, purposebuilt logistics in the e-commerce ecosystem.
India’s e-commerce market, valued at over $120 billion, spans categories like fashion, food and beverages, and other essentials. As digital consumption continues to grow, micro-mobility companies are adding another “e” to the mix—electric three- and two-wheelers. While established players dominate the electric three-wheeler cargo segment alongside emerging moped startups, companies like Zen Mobility are looking to differentiate themselves in e-commerce deliveries.
Zen’s offering is the Micro Pod—a compact, light electric vehicle, distinctive for its design and modular cargo boxes. Zen Mobility, founded in 2019 by Namit Jain who also leads the company as CEO, draws on the 35-year manufacturing legacy of the NTF Group, a Tier 1 supplier to OEMs like Maruti, Toyota, and Volkswagen. Backed initially with Rs 20 crore from the group, the startup now aims to raise Rs 100 crore by the end of 2025–26 to support its retail rollout and scale up production capacity.
An Evolving Market
India’s rapidly expanding and intensely competitive three-wheeler market is broadly segmented into L3 passenger rickshaws, L5 cargo vehicles, and L3 e-cart rickshaws. Electric three-wheelers account for over 60% of the market, followed by CNG at 28%, diesel at 11%, with the remaining share split between LPG, petrol and others. Zen Mobility’s Micro Pod is positioned closest to the L3 e-cart category, specifically engineered for short-haul, last-mile urban logistics where compact form, efficiency, and reliability are critical. According to data from the Federation of Automobile and Dealers Associations (FADA), 42,213 e-rickshaws (L3) were sold in June 2025, out of which 6,846 were e-carts.
Smaller form factors such as e-karts and pods are better suited for short-range operations like food delivery. “For deliveries within a 3 to 5 km radius, the L3 [e-cart] format works best,” pointed out Hemal Thakkar, Senior Practice Leader & Director at Crisil. “These vehicles typically come with smaller batteries but can still offer a real-world range of 80 to 90 km on a single charge. If the average delivery radius is around 5 km, operators can easily manage up to 16 trips a day — which is quite promising,” he noted.
However, Zen Mobility is still a minnow in this market. In its first commercial year (2024-25), Zen Mobility sold around 2,000 units of the Micro Pod—a modest figure compared to established companies such as YC Electric, and Saera Electric Auto that sold over 44,000 units and 28,000 units, respectively. However, segment-wise figures for e-cart loaders from both companies were not available.
Zen Mobility, however, is not positioning itself in the volume-driven race. “Competition is a given, but the addressable market is significant,” said Jain. “Major delivery platforms like Zomato and Swiggy collectively deploy several lakh riders daily. Even targeting a small share— say 5–10%—translates to a sizable potential for vehicles designed specifically for last-mile delivery.”
Beyond E-Rickshaws
The Micro Pod fills the gap between informal, unregulated e-rickshaws and more expensive L5 cargo three-wheelers. It has a payload capacity of 100–400 kgs, a range of over 120 km, and is fully road-legal. “Our product sits in a space where there is no direct competition. It’s not an L5 vehicle, not an e-rickshaw—it’s a micro cargo platform,” Jain explained.
While mopeds from startups like Zypp Electric, Bounce Infinity, and Yulu handle many e-commerce deliveries today, Zen Mobility wants to reshape the category. “Twowheelers used for doorstep deliveries are unsafe. Many are being used commercially without proper safeguards. It’s not legal, and it’s not sustainable,” Jain said. “We had to create something purpose-built.” The Micro Pod comes in two variants—R5x and R10x—and took nearly five years to develop: three years in design and two years in road-testing across 3–4 lakh kilometers.
“Initially, everything was failing—suspension, brakes. But we kept improving. Now the product is robust, and customers are seeing the value,” he added. Thakkar pointed out that the future of such vehicles will also depend on the extent of government support and policy direction. “For shorter distances, say, in the range of 3 to 5 km, they do make economic sense, as the investment is lower and the vehicle cost is relatively affordable,” he said.
Price Point and Differentiation
Companies like YC Electric and Saera Electric currently offer e-cart loaders priced between Rs 1.4 lakh and Rs 1.8 lakh, with payload capacities ranging from 300 to 500 kg. Zen Mobility’s Micro Pod, though similar in payload to these e-carts, differentiates with a modular design approach. The base vehicle is priced at Rs 1.49 lakh, but what sets it apart is the range of interchangeable cargo boxes, which cater to specific delivery needs. When equipped with these purpose-built boxes, the total cost rises to around Rs 1.99 lakh.
These cargo boxes are central to Zen’s value proposition, offering businesses the ability to customize vehicle functionality based on operational requirements. “Our three-wheeler stands apart with its fully customizable cargo box, offering businesses unmatched flexibility to optimize space, branding, and functionality,” said Jain.
Each box variant is designed with a specific use case in mind, claims the company. Its MP FEV box is suitable for transporting semi-large parcels, typically used in e-commerce, while the MP LWB box is designed for large grocery orders and packets. It also has boxes for transporting dairy products and pharmaceuticals with active cooling, as well as those for rugged use, such as moving raw materials, supporting intra-factory logistics, and handling items like plants, gardening tools, or soil.
From Pods to Presence
Zen Mobility currently operates through three business models: direct B2B sales, leasing via its proprietary Zenflow platform, and a Fleet-as-a-Service (FaaS) offering that bundles rider management, vehicle financing, and maintenance. Revenue is presently diversified across segments, with 30% from B2B, another 30% from B2C, and the remaining split between driver-owned vehicles (20%) and exports (20%).
The company has set a target of selling 5,000 units in the financial year 2026—more than double of 2024-25 volumes, but in a highly fragmented and price-sensitive market, execution will be key. Its Manesar plant has a rated annual capacity of 30,000 units, and a new 10,000-unit facility is underway in Bengaluru.
A third location, potentially in Pune or Gujarat, is being explored to eventually scale capacity to 50,000 units by 2030. However, actual utilisation of these capacities will depend on sustained demand, dealer ramp-up, and capital infusion. Zen’s retail ambitions are 50 exclusive showrooms across Tier 1 and Tier 2 cities, signaling a shift toward massmarket visibility.
Yet, success in this segment will depend on dealer viability, after-sales support, product reliability, and fleet economics in real-world usage. As Jain put it, “The mass market in India is our focus. Every kirana store, dairy shop, and local restaurant needs efficient delivery vehicles. We need to be next door to them.” Turning this vision into a scalable and profitable retail footprint will be the true test.
Global Strategy
Zen Mobility’s Micro Pod recently made its international debut in Dubai, garnering interest from Europe and the Middle East. However, converting early interest into consistent export volumes will depend on successfully navigating certification hurdles, logistical challenges, and post-sales support in unfamiliar markets. Exports are expected to begin by late 2025. Jain points to pricing arbitrage as a key advantage: “Even the cheapest twowheeler in Europe sells for €5,000–€6,000—that’s Rs 5–6 lakh. Our offering is very competitive.”
Despite these opportunities, Zen remains a bootstrapped startup, funded entirely by its parent group so far. Its plan to raise Rs 100 crore by 2025–26 aims to support simultaneous retail expansion, export market entry, and new manufacturing capacity. But balancing these priorities, each capital- and execution-intensive could prove challenging unless supported by strong investor interest, operational discipline, and strategic focus.
Zen Mobility currently deploys lithium iron phosphate (LiFePO4) battery packs across its vehicles and is working on second-life battery solutions to enhance sustainability and lifecycle value. “We want to avoid recycling as the first option. Refurbishing old batteries can extend their value significantly,” Jain said. While a sensible direction, the commercial and regulatory feasibility of second-life battery use is still evolving and may require additional testing, partnerships, or policy support.
Looking ahead, the company is also exploring alternative battery chemistries such as aluminium-air, sodium-ion, and solid-state technologies. Jain is optimistic that “the next two years will bring better packs, and we won’t be as dependent on China.” However, many of these technologies remain in early development stages globally, and commercial readiness, particularly in cost-sensitive segments like threewheelers, could take longer than anticipated.
Zen is also eyeing hydrogen-powered vehicles as part of its longer-term roadmap. “Today, hydrogen is expensive not because of the fuel itself, but because of distribution. Once on-site electrolyzers become viable, everything will change,” Jain noted. While the forward-looking intent is clear, hydrogen adoption in light commercial vehicles remains distant, especially in India, where infrastructure and economics still pose significant barriers.