eBikeGo‘s subsidiary, Vajram Electric Ltd, has acquired a 40% stake in Hyderabad-based electric vehicle manufacturer Varcas Automobiles Pvt Ltd. This strategic move aims to strengthen Vajram’s presence in the electric vehicle market and accelerate innovation and production to meet rising demand, particularly in Tier-2 and Tier-3 cities.
Varcas Automobiles Pvt Ltd has a record of delivering over 25,000 electric two-wheelers to date and generating a revenue of INR 110 crore. This acquisition is set to create synergies that will boost production and cater to the growing market for electric two-wheelers across India.
What does this acquisition indicate?
The acquisition allows Vajram Electric Ltd to leverage Varcas’ manufacturing capabilities, enabling it to scale up production efficiently. The Indian electric vehicle market is experiencing rapid growth, fueled by government initiatives, increased environmental awareness, and a shift in consumer preferences. Increasing Vajram’s production capacity will allow it to better serve expanding markets and enhance its position within the sector.
Dr. Irfan Khan, Chairman of Vajram Electric Ltd, emphasized the importance of the partnership. “This strategic partnership with Varcas Automobiles Pvt Ltd will provide us with the operational scale and technological expertise needed to meet the growing demand for electric two-wheelers. Together, we will drive greater innovation and bring affordable, high-quality electric vehicles to a larger audience, contributing to India’s green mobility revolution.”
Varcas Automobiles strategy
Varcas Automobiles Pvt Ltd brings a robust track record and proven market performance to the table. This, coupled with Vajram’s market reach and innovative approach, sets the stage for significant growth and expanded influence within the Indian electric vehicle ecosystem.
Vajram Electric Ltd’s acquisition of a substantial stake in Varcas Automobiles Pvt Ltd marks a strategic step toward enhancing production capabilities and meeting the growing demand for electric vehicles in India. This partnership promises to drive innovation, expand market reach and contribute significantly to the country’s sustainable transportation goals.
Ram Vemireddy, Founder & CEO of Varcas Automobiles Pvt Ltd, shared his thoughts on the collaboration. “Varcas Automobiles is dedicated to revolutionizing the way we think about transportation in India. Our mission is to deliver high-quality, reliable, and affordable electric vehicles that meet the diverse needs of our customers while contributing to a cleaner environment. Finally found a perfect partner who is in harmony with our thoughts and mission, so together aim to lead the EV market in innovation and customer satisfaction.”
