Vajram Electric Secures 40% Stake in Varcas Automobiles to expand EV production capabilities

The partnership targets to improve innovation and production capacity in India's growing electric two-wheeler market

14 Oct 2024 | 5776 Views | By Autocar Professional Bureau

eBikeGo's subsidiary, Vajram Electric Ltd., has acquired a 40% stake in Varcas Automobiles Pvt Ltd, an electric vehicle manufacturer based in Hyderabad. This acquisition aims to enhance Vajram's presence in India's electric vehicle (EV) market.

Varcas Automobiles has delivered over 25,000 electric two-wheelers and generated revenue of ₹110 crore, indicating its growth potential. The partnership between Vajram and Varcas is expected to create synergies that could improve innovation and increase production to meet the growing demand for electric two-wheelers in India, the company states. 

With this acquisition, Vajram Electric intends to leverage Varcas’ manufacturing capabilities to scale up production, particularly in Tier-2 and Tier-3 cities. The Indian EV market is experiencing significant growth, driven by government initiatives and increasing consumer interest in sustainable transportation. Vajram's expanded capacity may help it address emerging market needs.

Dr. Irfan Khan, Chairman of Vajram Electric Ltd., commented that this partnership will provide the necessary operational scale and technological expertise to meet the rising demand for electric two-wheelers. The collaboration aims to drive innovation and make affordable electric vehicles more accessible, contributing to the advancement of green mobility in India.

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