ACKO Drive Exclusive: This EV Startup Founded by an Ex-Tesla Engineer Seeks a Strategic Partner

Mohanraj Ramasamy, an engineer who worked at probably the world’s most disruptive EV startup, Tesla, wanted to emulate the American player’s sustainability, frugality, and leadership approach in India. Launched in 2020, the Coimbatore-based Srivaru Motors (SVM) launched a mid-variant of its performance e-motorcycle called Prana in January 2021, but the ride has been bumpy.

“Sales have been slow. We have gotten over 2,000 enquiries per campaign, but we are unable to convert them into sales due to a lack of dealership expansion,” says Ramasamy. He adds that because the industry experienced cheaper EV fires in the past and service-related issues for some EVs, customers want to have a showroom close to where they live so they can buy with confidence.

SVM argues that the Prana's price tag of over ₹2 lakh is well justified considering its riding range (150 KMs claimed), total cost of ownership, build quality, serviceability, and reliability. Some other EV startups are selling their vehicles at a loss to scale up their businesses. 

In order to overcome the scale-up challenges, which is primarily funds availability, SVM is scouting for a strategic partner, preferably from the EV ecosystem. A document for prospective investors mentions patented resolver-based in-wheel motor technology, a BYD-manufactured LFP battery, a riding range of 250 km per full charge, and detachable alloy wheel mounts for easy repair, among other things, as differentiators for SVM in terms of technology and design.

SVM has a production capacity of 2,000 units per month at its facility in Coimbatore, which is ‘scalable further’. A $1.2 million battery pack assembly facility with an installed capacity of 2,000 packs a month was commissioned about three weeks ago.

Started with the objective of building indigenously engineered EVs, SVM employs 40 engineers in its team of 65 employees. With its collective engineering capabilities, SVM claims in its pitch for potential strategic partners that “proprietary technology” and “scalable production” are its strengths, which could help it grow into “India’s premium electric motorcycle leader.”

While Ramsamy seeks a strategic partner to sustain his company’s EV journey, he also clarifies that SVM “doesn’t have any loans” as “all previous loans have been paid off”. The EV maker had been listed on the NASDAQ in December 2023, but is not currently traded as it failed to comply with the stock exchange’s minimum $1 bid price. However, “currently it is traded OTC (Over the Counter)”, Ramasamy says. 

Though EVs are an emerging market, and the future is said to be electric, playing the game successfully is definitely easier said than done – more than one EV maker has found it to be so in India, and overseas. As for SVM, its future plans include entering the e-scooter segment with two models – one a Honda Activa equivalent, and another a more affordable “sub ₹80,000” scooter. In the electric motorcycle space, Ramsamy says a commuter variant named ‘Class’ is planned to be added to the current Prana range of ‘Grand’ and ‘Elite’ variants.