This is an AI translated post.
Potential for Japan's entry into the Indian market? Marubeni invests in River, an Indian electric motorcycle company.
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Summarized by durumis AI
- Marubeni Ventures will invest in World of River Limited, Inc., an Indian electric motorcycle manufacturing and sales company, to support River's business expansion.
- This investment is part of India's efforts to achieve its goal of 80% electric motorcycle sales by 2030, and is a strategic move considering India's high motorcycle usage rate and rapidly growing electric motorcycle market.
- River is building its own factory in Bengaluru to produce electric motorcycles called Indie. The Marubeni Group will provide financial support and expertise to help River grow, and will explore future possibilities such as entry into the Japanese market and joint development.
On June 27, 2024, Marubeni Ventures, a subsidiary of the general trading company Marubeni Group, announced an investment in World of River Limited, Inc., a North American company that manufactures and sells electric motorcycles in India. This investment is intended to support River's business expansion.
This investment is part of the global efforts towards carbon neutrality, and the development of eco-friendly technologies is also actively underway in the motorcycle industry. In particular, the Indian government has set a goal of converting 80% of new two-wheeler sales to electric motorcycles by 2030, highlighting the immense growth potential of the electric motorcycle market.
India has a very high motorcycle usage rate, with approximately 18 million new motorcycles sold each year. With population growth, the market size is expected to expand further. In this context, converting gasoline engine motorcycles to electric motorcycles is expected to significantly reduce CO2 emissions, leading the Indian government to have high expectations for this sector. In fact, India has started to see an increase in electric motorcycle lineups since 2022, and the market is growing rapidly, accounting for approximately 4% (630,000 units) of new car sales in 2023.
River has built its own factory with an area of approximately 11,000 square meters on the outskirts of Bengaluru, the fourth largest city in India and a hub of the IT industry, and is producing the "Indie" electric motorcycle, which was launched in the fall of 2023. Indie is a model with a unique rectangular two-piece design and practicality, similar in size to 150cc city commuters like the Honda PCX160 or Yamaha X FORCE in domestic brands. It is equipped with a motor that outputs 6.7kW (9.1ps) / 26Nm and a 4kWh lithium-ion battery, achieving a top speed of 90km/h and a range of 161km (India IDC mode).
Through this investment, Marubeni Group plans to provide River with the necessary funds for business expansion and leverage Marubeni Group's expertise and network to support River's growth. While specific strategies such as sales in Japan or joint development have not been disclosed, this is a project that warrants attention for its future development.
