River Indie: New EV Two-Wheeler Aims for India's Competitive Market

The Rise of Electric Two-Wheelers in India

For a long time, two-wheelers have been essential to daily life in India. Their compact size and affordability have made traditionally gasoline and diesel-powered scooters and motorcycles the preferred method of navigating congested urban areas.

Introducing River: A New Contender

A new company, River, has recently emerged from stealth mode, introducing an electric two-wheeler scooter alongside a range of subscription-based services. This offering is specifically designed to attract contemporary consumers seeking a cost-effective, yet stylish, vehicle suitable for work, leisure, and all tasks in between.

Company Origins and Growth

Founded in late 2020 by Aravind Mani and Vipin George, River secured $2 million in initial funding from Maniv Mobility and TrucksVC. The company has rapidly expanded to a team of 42 individuals.

The team comprises experts from leading companies such as Ather, Arai, Bosch, Honda, Ultraviolette, and Vespa, who have collaboratively developed a prototype vehicle slated for public unveiling later this year.

Founders' Expertise

Both founders bring significant experience in the two-wheeled transportation sector. Mani, previously holding the position of Vice President of Business Strategy at Ultraviolette, transitioned from a background in petrochemical engineering to focus on electrified transport.

George contributed eight years of service at Honda R&D India, including a tenure as Head Designer, and later served as Design Lead at Ultraviolette.

A Multi-Utility Vehicle Concept

The founders envisioned a two-wheeler capable of handling demanding work tasks while simultaneously delivering enhanced performance and style for everyday enjoyment.

“We aim to replicate the truck culture prevalent in the United States, where a vehicle serves both as a work tool and a primary means of transportation,” Mani explained. “Currently, India lacks a comparable offering in the two-wheeler segment, and that’s the niche we intend to fill.”

Mani also emphasized the importance of vehicle aesthetics, noting that “in India, owning a two-wheeler often represents a status symbol, a sign of achievement for many individuals.”

The RX-1: Specifications and Features

The result of their efforts is the RX-1, a “multi-utility” electric scooter available with various battery pack options. These options provide a range of 100 km (62 miles) to 180 km (112 miles) on a single charge.

The scooter accelerates from 0 to 40 km/h (25 mph) in 4 seconds, reaching a top speed of 80 km/h (50 mph). Its payload capacity of 200 kilograms makes it suitable for carrying packages and other goods.

Pricing varies depending on the chosen battery pack, ranging from 80,000 INR ($1,070) to 100,000 INR ($1,337).

A Competitive Landscape

River’s launch occurs during a period of significant growth and intense competition within the Indian electric vehicle market.

Government Incentives

The Indian government is actively promoting the adoption of EVs to reduce reliance on polluting gasoline and diesel vehicles. Subsidies for domestically manufactured electric two-wheelers have been increased.

The Department of Heavy Industries now offers incentives of Rs 15,000 ($200) per kilowatt-hour, with the subsidy cap doubled to 40% of the vehicle’s price.

Fleet Electrification Efforts

E-commerce and delivery companies, including Flipkart, Swiggy, and Zomato, are also driving the shift towards electric fleets. Zomato intends to operate exclusively with EVs by the end of the decade.

Swiggy plans to cover 800,000 kilometers (497,000 miles) daily using electric vehicles by 2025, while Walmart-owned Flipkart aims to deploy over 25,000 electric vehicles in its supply chain by 2030.

Market Opportunity

“Approximately 60% to 70% of the Indian population is self-employed, and two-wheelers are fundamental to their livelihoods,” stated co-founder Aravind Mani. He added that the growth of e-commerce, with an estimated 14 million fleet delivery riders in India, has further fueled this trend.

“The COVID-19 pandemic has accelerated this shift, and demand for on-demand services continues to rise.”

A Growing EV Startup Ecosystem

These opportunities have led to the emergence of hundreds of EV startups. Research from Sanford C. Bernstein & Co. in March 2021 identified over 470 EV companies registered in India.

“A surge of investment is underway to capitalize on this emerging market,” noted Venugopal Garre, Managing Director and Senior Analyst at Sanford C. Bernstein & Co. “While some companies will be acquired or fail, a select few are poised for substantial growth.”

River’s Competitive Advantage

River faces competition from established players like Ola Electric, Bounce, and Aether Energy, as well as numerous smaller companies. However, the company’s founders believe their vehicle and business model address a unique market need.

Sales and Subscription Model

River plans to sell directly to consumers and offer a comprehensive suite of subscription services and customizable accessories, allowing owners to adapt their scooters to changing needs.

Sales are anticipated to commence in the second half of 2022.

Charging Infrastructure Strategy

The company will provide subscriptions for charging, battery packs of varying sizes, maintenance, and connectivity features. River will not invest in building its own charging infrastructure.

Instead, it intends to establish a charging franchise system, collaborating with small businesses to host charging stations for public use.

Targeting Businesses and Fleets

River aims to sell its scooters directly to businesses such as restaurants, fleet operators, and larger e-commerce companies.

Manufacturing Plans

The startup will assemble scooters at “small-scale manufacturing facilities” capable of producing around 3,000 vehicles per month. If successful, River plans to establish multiple facilities across India.

The company has already secured initial agreements with suppliers, including those involved in the co-development and assembly of its battery packs.