KSL Cleantech Announces JV With China's Huaihai Holding Group To Make EVs In India

KSL Cleantech Limtied, a Kolkata-based electric vehicle manufacturer, has announced a joint venture with China's electric vehicle manufacturer, Huaihai Holding Group, one of the largest manufacturers in China of electric mini vehicles. The joint venture will be an equal partnership strategic joint venture, which will be tailor made for the Indian EV market, and will include the whole ecosystem of manufacturing in India from product design, development, manufacturing, marketing, sales and after sales. Even critical components of a range of electric vehicles in the passenger and commercial segments will be manufactured in India.

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The new entity, to be called Huaihai-KSL Auto Private Limited, will invest an amount of Rs. 200 crore to set up manufacturing and assembly units in India, along with a countrywide sales and distribution network, as well as vendor and channel sales development. Huaihai-KSL will manufacture a range of electric vehicles in the two-wheeler and three-wheeler segments, catering to both private and commercial use. Production is slated to begin later in 2020, and KSL already has an existing assembly unit for these electric vehicles in Kolkata with a capacity of 10,000 units per month. The production capacity will be ramped up to 100,000 units annually in the next three years, and a countrywide dealership and service network of 100 sales and service points.

The joint venture will develop technology for a range of electric vehicles including mini, commercial and passenger vehicles. Huaihai-KSL expects to launch up to 10 new models in the electric two-wheeler and three-wheeler category based on market response and requirement within the next three years.

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China's Huaihai Holding Group was established in 1976 and has four major manufacturing bases across China and a workforce of more than 20,000 people. The firm's marketing network covers 76 countries worldwide and Huaihai manufactures and sells 15 lakh mini electric vehicles annually. Huaihai also has a separate vertical for internal combustion engine motorcycles under the Zongshen brand name which is a separate entity catering to petroleum -powered motorcycles. Recently, Zongshen has signed an agreement with British motorcycle brand Norton under which Norton will manufacture a new 650 cc engine for Zongshen.

KSL Cleantech was formerly known as Kirti Solar Limited, with offices and sales network across 10 Indian states, and has supplied and installed more than 5,000 systems across India in solar rooftop, solar irrigation projects, as well as electric mini-vehicles. KSL has recently launched electric bicycles in partnership with Britain's GoZero mobility.