In recent months, Godawari Electric Motors has opened several new showrooms across India, with plans for further expansion. In a conversation with EFY’s Nitisha, Hyder Ali Khan from Godawari Electric Motors Limited, outlines the criteria for selecting dealers and their roles in the EV industry.
Q. What is your company’s approach to vehicle assembly?
A. Assembly is entirely conducted in-house. However, like most automobile industries today, we operate on an asset-light business model. We manufacture certain components, such as our body and other parts specifically designed and developed for us. We source from top manufacturers to assemble into our vehicles other key components like the powertrain, lighting systems, wheels, batteries, and chargers.
Q. How long and costly is vehicle development?
A. Creating a vehicle from scratch, including conceptualisation, design, thorough testing, and validation, typically spans around two years per vehicle. From the initial stages to launch, it usually takes 18 months to two years, with an approximate cost of ten crores (100 million rupees). However, if you opt for reverse engineering, sourcing parts from China or India and assembling them, you can cut the development time to six months with an investment of one crore. But, there will be a noticeable disparity in performance between the fully developed vehicle and the one assembled through reverse engineering.
Q. What are the design and vendor standards?
A. All our vehicles are entirely original designs, created from the ground up. We haven’t engaged in reverse engineering or copying existing products. Additionally, we exclusively partner with India’s top automobile vendors for our components; we do not rely on tier two or tier three Chinese suppliers. Our leading Indian vendors provide us with essential parts such as powertrains, lighting systems from JC, seats, and brakes.
Q. What criteria are used to select dealers, and what does the model offer?
A. We have identified five essential criteria for our business partners or dealers. They should have experience in the automobile industry, be service-oriented, possess an understanding and enthusiasm for electric vehicles, be youthful, and have sufficient financial resources to start the business. Our business model offers a comprehensive range under one roof, including two-wheelers, three-wheelers, and bicycles. This approach ensures that our dealerships become viable quickly.
Q. How many dealers are currently operational, and what is your target number?
A. Currently, we have 60 operational dealers and about 10 set to begin within the next week, bringing the total to 70 dealers in operation within the next 15 days. Additionally, 20-25 more dealers who have already received their letters of intent (LOI) are securing showrooms and preparing to start operations within a month. Our goal is to have 100 dealers operational by July. Initially focusing on metros and tier A+ cities, our strategy will expand to include tier B and C cities.
Q. How does your company ensure the sustainability and market success of its dealers?
A. Our business partners play a crucial role in our success. They serve as our sales points and provide visibility and service for our vehicles. In exchange, we offer them a comprehensive marketing activity package, including per-vehicle margins and training. We assist them in selling vehicles and regularly introduce new products to excite the market, typically every three to four months. The roles of our company and our dealers are distinct and complementary. For example, in a city like Jabalpur, people recognise Godawari through the dealer rather than the company itself. To support our dealers, we continuously provide high-quality and innovative products and robust marketing support, ensuring their sustainability in the market.
Q. What are your plans for vehicle launches?
A. We have launched two models in the scooter segment and plan more. By August, we will introduce a youthful scooter with a more powerful motor, higher speed, larger battery, and additional features. By the end of the financial year, we aim to unveil a motorcycle tailored for middle-class families. We are developing an eco-model for the L5 segment in the three-wheeler category, priced lower than current offerings. While we are focused on expanding our two-wheeler range, the concept of a four-wheeler, akin to a loader, may materialise in the next two years.
