EV startup River Mobility set to expand electric two-wheeler manufacturing, aims for 1,000 locations by 2030: CEO Aravind Mani

The first session of the Malayala Manorama Sampadyam Kerala Business Summit, which was held in Kochi on Thursday under the theme 'Navigating New Economy', began with a fireside chat titled ‘Driving EV Era’, on the electric vehicle industry. Aravind Mani, the CEO and co-founder of the electric two-wheeler company River Mobility, described the company's expansion plans, growth strategy, and the difficulties facing India's EV manufacturers.

According to Aravind, River Mobility targeted independent business owners and tradespeople who rely on two-wheelers for their livelihoods by building its company on the concept of fusing utility with enjoyment. He said that rather than competing only on pricing, the firm aimed to set itself apart by creating a high-end electric scooter that reflects clients' lifestyles and satisfies practical needs.

After talks between Aravind and co-founder Vipin, an automotive designer who had worked with Honda for almost 10 years, the firm raised its first $2 million in March 2021 and started operating.

In February 2023, River Mobility introduced its scooter, and later that year, it started making commercial deliveries. With over 100 locations, he said that the company had achieved monthly sales of about 8,000 automobiles and held about 3 per cent of the two-wheeler market. He emphasised the company's success in expanding its market presence with just one product, whereas well-established rivals usually have larger dealership networks and a variety of products.

The company intends to grow its retail network to 200 locations by March 2027, 400 by March 2028, and 1,000 by March 2030, according to Aravind. After purchasing 55 acres of land from the Karnataka government, River Mobility also started construction on a second production facility; the first phase is anticipated to be operational by July 2027.

Aravind explained the company's investment process, stating that River Mobility first reached out to investors with automotive experience and mobility-focused venture capital funds. In an effort to speed up product development and production, the company later obtained strategic financing, including from the Japanese automaker Yamaha.

According to Aravind, the economics of car ownership contributed to the substantial growth potential in India's electric two-wheeler sector. He made the case that consumers who depend on two-wheelers for everyday mobility and work would find electric scooters appealing due to their lower operating expenses by comparing the price of petrol and electricity.

Aravind, however, also drew attention to the financial challenges encountered by up-and-coming EV producers. He noted that River Mobility and some other more recent automakers have been unable to take advantage of the government's production-linked incentive program due to eligibility limitations, which has hindered their capacity to compete with more established competitors, especially in the lower-priced segments.

He claimed that during the next six to seven years, a significant portion of India's two-wheeler market would transition to electrification, with electric scooters gaining foothold more quickly than electric motorbikes. Aravind stated that in order to compete with established manufacturers, River Mobility would need to scale manufacturing, increase distribution, and maintain product quality in order to achieve sustained growth.