DAO EVTech expanding its operations through Chennai
● Propose to invest $100 million (Rs. 100 crore for Tamil Nadu) in India
● Aim to hire 2000 individuals before2025
● The goal is to launch 20 dealerships in Chennai
Chennai, 2 March 2023:A smart electric mobility manufacturing startup with a Make In India focus, DAO EVTech is preparing to establish a significant presence in India by manufacturinginnovative, reliable and superior-quality products. On March 2, 2023, a event for DAO’s new line of electric automobiles was conducted in Chennai. DAO EvTech’s Chairman and CEO, Dr. Michael Liu, unveiled the new vehicles and elaborated the company’s plans for expansion in India.
Dr. Michael Liu, Chairman & CEO of DAO EvTech, stated that the Tamilnadu market is crucial to any EV two-wheeler manufacturer during the launch event. There are three basic reasons for this. 1st is Tamilnadu’s capital Chennai has the highest two-wheeler penetration rate of 73%, which is nearly double that of other major cities such as Mumbai and Bangalore. EV is a growing business that is more focused on young individuals who embrace technology quickly, and the state has a large population, making Tamilnadu an EV-friendly state. Any quality product supplier, like DAO, is encouraged to enter this market by the state’s welcoming culture and its citizens’ attention to detail, commitment to excellence, and logical analysis. We will continue investing $100 million in India, and in 2023, we’ll set aside $20 million for the development of novel products. With this $100 million investment, we have specifically set aside Rs. 100 crores for Tamil Nadu. With our expansion strategy, we expect to generate 2000 new positions over the next two years.”
India is involved in the global EV shift, he continued. The EU has set a goal for its member states to switch to 100% electric vehicles by the year 2035, while China has already reached a 4W EV penetration rate of 40% and the United States is committed to achieving 50% EV penetration by that same year. With the strongest intellectual assets, the largest population, and the third-largest vehicle market in the world, India is unquestionably spearheading this transformation. Yet, given that India is the largest 2W market in the world with a per capita GDP of $2400 and a registration rate of 90% 2W vehicles, this transition will be unique in India starting today. According to market analysis by McKinsey & Company, the Indian market would grow 20 times over the next four years, reaching 9 million electric vehicle units by 2030. We are currently witnessing market expansion. On a volume basis, the market increased three times last year. The traditional trade model is being replaced by other competitive players as the EV 2W market diversifies.
DAO EVTech already have active dealerships in Madurai, Polachi, Coimbatore, and Thanjavur in Tamilnadu state. In particular, the 20 dealerships that DAO had planned to open in Chennai will all be able to do business within the next few months. DAO is now focusing on building and developing the dealership’s connecting power; it will soon grow significant cities like Chennai as its centre for regular demand fulfilment in nearby Tier 2 and Tier 3 cities.
DAO is not only focused to Tier 1 cities, but it is also focusing on Tier 2 and Tier 3 markets with its varied product range for each market. In addition to our flagship model, the DAO 703, we also offer the ZOR 405, which is well-liked in Tier 2 and Tier 3 cities. With a 220 kg load capacity, the Zor 405 has a low centre of gravity, a sturdy foot stand, and dual suspension. For the working class in the suburbs and cities, it is ideal. The product’s objective is to simplify difficult job. DAO provides its extended partners with the DAO Entrust programme. We have specialised teams for each area to assist our current and future dealers, with marketing and branding being one of them.