KSL Cleantech Limited Partners China’s Huaihai Holding Group For Joint Venture

KSL Cleantech Limited (formerly known as Kirti Solar Limited) has entered into a Joint Venture (JV) with China's Huaihai Holding Group.

The Joint venture shall be comprehensive for the Indian market & comprise of product design, development, manufacturing, product innovation, marketing, sales, finance, after-sales service and the supply of critical components for electric vehicles in India. Huaihai KSL will invest up to Rs 200 crore in the near future to set up manufacturing/assembly units in India along with country-wide sales, distribution network, vendor development, channel sales development, marketing, and brand building. The production is slated to begin in 2020 and will be ramped up in phases. Already, KSL Cleantech has an existing assembly unit for these vehicles in Kolkata with the capacity of 10,000 units/annum.

The JV will develop technology for a range of electric vehicles including mini, commercial and passenger vehicles and will draw from the latest in electric vehicle technology, apply cost-effective design experience and use intelligent interconnectivity. Huaihai KSL expects to launch up to 10 models in electric two and three-wheelers category based on the market response and need, in another next 12 - 36 months in India.

The current market share for electric two-wheelers in India is 50,000 pieces/ annum and three-wheelers share is 100,000 pieces/ per annum. The JV is looking at a consolidated figure of 100,000 pieces in the next three years. Huaihai KSL is also planning to work under FAME 2 scheme for electric mobility.

Dhiraj Bhagchandka, Managing Director, KSL Group, notes, “The JV shall bring together the strengths of both the companies, harnessing full the potential of Huaihai’s manufacturing and R&D expertise combined with the experience, resources, knowledge of KSL Cleantech in India.” 

Cathrine Xing, Director, Huaihai Holding Group & GM for International Business, avers, “Huaihai group has decades of experience & market leadership position in electric two and three-wheelers globally. Through our exclusive joint venture with KSL Cleantech, we now plan to leverage our expertise in design & development, sales & service of these vehicles for the Indian market. Huaihai has already ventured in the electric four-wheelers category in China & we will also explore this range of vehicles for the Indian market in the future.”

Huaihai - KSL intends to appoint dealers and distributors across India. Also, it plans to open a chain of company-owned showrooms in various locations of India to expand the sales and distribution network. In the near future, Huaihai KSL will also look at operating its own fleet of vehicles as a service offering to major e-commerce and logistics companies in India.

The joint venture Huaihai Holdings and KSL Cleantech are being formed with an intention to set up an integrated manufacturing plant, strong R&D, nationwide sales and service network for electric two-wheelers and three-wheelers for the Indian market.