After two years at Maini Materials Movement in Bengaluru post an MBA, Mechanical Engineer Mohit Nagaich shifted to teaching and joined NIET in the same city. He spent three years as Assistant Professor and revelled in the environment of connecting with students and engaging in a flurry of projects.
“It was a good feeling to be involved in innovation. It was the passion, not the salary,” he recalls, on a day with his family in Bhopal on the occasion of Karva Chauth, 4th November.
He moved to Bhopal after three years in academics, for an assignment with an electric golf cart manufacturer (in-campus mobility vehicle) starting 2013. When the company planned scooters, Nagaich was over the moon. It seemed like he had found his life’s purpose. But that was not to be. He moved out and researched the making of electric scooters over another three years and arrived at a plan of action. Aslov Automotives came into existence much later in February 2020, when the product was almost ready – the Hyena M1.
He had come some distance from the naval ships he was involved in overhauling at L&T’s shipbuilding centre after completing his engineering degree. He seemed to be somewhat following the family tradition of being in the service of the nation, specifically the navy – his father happens to be a navy veteran. While Nagaich is not engaged with ships anymore, his father is a Director at Aslov.
Passion for Green
“I am somewhat of an activist,” confesses Nagaich, elaborating on his mission to make India ride EVs and cut down pollution. If it were possible, he would give electric scooters to people for free, says the engineer-turned-environment ‘activist’.
He adds, “It’s the time for action. People talk so much about global warming. People should act now. With the unlock happening, the carbon footprint will start rising more and more. Sustainable development is a must. Else, we are digging our own grave.”
On the scooter that he has created, he is quite confident. “Unless I am 200 per cent confident in the product, I cannot sell it. I am extremely confident about the product that we have built from scratch. It is also available at a very reasonable price compared to the offerings in the market and yet, the build is unique and suited best for India,” explains Nagaich.
He contends that most parts of electric scooters sold in India are still imported from China and assembled in India. Components like lithium-ion cells, which used to be imported from China earlier, are sourced by Aslov from Korea now. The rest of the Hyena has been built entirely in India, underlines Nagaich.
“When it touches the port, it costs Rs.20,000 and when it is sold, it costs Rs.70,000. The difference between what people are paying versus what they are getting is huge. I wanted to drastically decrease this gap. We did reverse engineering. The first focus was on spare parts. We wanted the manufacturing to be such that all spares are easily available in the Indian market. From our axle to the nuts, everything is made in India. If the scooter is imported, you will always be short on supply of spares. As a result, after two years it will end up in the scrap yard if something goes wrong,” explains the MD.
Inspired by Maruti
The rooting in that thought of easy serviceability for ‘pocket-friendly service’ and ‘anywhere service’ was inspired by Maruti.
“Even a middle class guy can maintain a Maruti car. That was the inspiration. It can be serviced even by semi-optimum labour,” he adds.
Nagaich was clear that the design had to translate into utility and that there would be no cost cutting leading to lower durability. The Hyena is designed for rugged use and the founder claims that no one has invested in creating a new design in the segment in India. On the looks of the Hyena being compared to the TVS XL mopeds, he says there’s a marked difference when people see the vehicle in person or read the specs.
“There is a lot of iron used and it can go on any terrain. The axis is virtually indestructible and can last for many more years, though we give an official warranty on it for eight years (mechanical warranty on body and chassis). We have used a chain drive motor to create greater ground clearance,” says Nagaich. On the Hyena’s battery, Aslov is offering a four-year guarantee.
The entry level model Hyena M1 BASIC comes with a 48V 24AH battery and promises a range of 60km. This is priced at Rs.57,000. At the top end, Hyena M1 GOLD priced at Rs.85,000 with a 48V 70AH battery promises a range of 180km. Across the L1 category for which Aslov has secured certification from ICAT, the top speed limit is 45kmph. Considering factors like city riding and optimising range, Nagaich says Aslov has decided to cap the speed limit at 30 kmph. Will this be a limitation in the category?
“In places where you have very bad roads or no roads, you cannot go very fast. You need a sturdy, reliable vehicle that can be easily serviced if at all there is a need. Even in cities, with the road and traffic conditions, how fast will you go?” counters the Founder.
While it is not built for speed in its first version, he reminds us that this is the first version. The team will consider tweaking the top speed in future editions based on market feedback. The current feedback, says Nagaich, is very encouraging.
Bookings Open
Manufacturing is underway in Bhopal and Pune and Nagaich says a lot of investment has gone in, without specifying how much. While dealerships are being signed up across cities, online orders that were opened during Dussera have started trickling in. A tie-up with Safexpress allows Aslov to deliver to any location in India.
The flagship outlet will be in Mathura, reveals Nagaich, quite thrilled with the encouragement to EVs from the Uttar Pradesh Chief Minister Yogi Adityanath. He points out that the only rickshaws visible now in the pilgrimage city of Mathura are e-rickshaws.
Aslov would like to have its own outlet in Bhopal, while talks are on for dealerships in Rewa (MP), Vizag, Kolkata and Goa, besides multiple towns in Tamil Nadu, Jammu & Kashmir, Gujarat and Chattisgarh. Over 200 queries have come in for dealerships largely through word-of-mouth and some social media visibility, says Nagaich. Talks are also on with investors to scale the venture. The current manufacturing capacity is 50 units a month.
For a dealership, Aslov is looking at a minimum order of 10 scooters and a security deposit of Rs.2 lakh in metros and Rs.1 lakh in other cities and towns.
“In Kashmir we are not taking the deposit amount. We have received interest for dealerships in Pulwama, Anantnag, Shopian and Pahalgam. There is a scarcity of opportunities and jobs and we recognise that. We are also waiving the deposit amount for defence personnel and handicapped persons,” says Nagaich.
On the consumer end, Alsov is in talks with a financial technology company to become an EMI partner. Everything looks set, but how does Aslov plan to service after sales in remote locations? They have thought of that too. Aslov will partner with existing e-rickshaw servicing partners in different cities on a revenue share model.
“We will also post a video on how it’s done. It is actually very simple. If a person spends a week on it, anyone can service it. I had no official training in making a scooter, but it is very easy for me now,” he reasons.
The makers are gearing up to send the first lot of vehicles out – three to UP, two within Bhopal, two to Pune and one to a small town in Maharashtra Nagaich cannot recall instantly. At a unit sales level, the operation is profitable, says the MD.
The hybrid model seems thought through. Aslov will not take online bookings from cities and towns where it appoints dealers. For the end-consumer, the price will remain the same, be it booked at a dealer or online and delivered thereafter within 21 days.
Scale on Demand
The bodies of the first vehicles are being fabricated through tie-ups, which means Aslov is making just two to three a day currently. With an in-house die, Nagaich estimates that the number could go up to 10 a day. More importantly, he points out, the cost will come down further.
“In the beginning, margins will be low. But we need to keep the price attractive and deliver value to that customer. As we scale, cost could come down further and we could also drop the price further,” he explains.
By December, Aslov expects to ship out 100 scooters. The plan is to scale up to 300 units a month. How long will the scaling process take?
“Bhopal is the undeclared hub of mechanical works. There is a lot of semi-skilled work that happens and there are a lot of semi-skilled workers. We are giving them an opportunity to work in the organised sector. Right now, I am pushing people back because we do not have the scale. The moment we need to scale, we can pull them in,” affirms the Founder.
Cost and price will also be dependent on developments in technology and critical elements like the battery. The core team of six people includes resources tracking the space to predict the coming changes in a five-year horizon.
Scaling will also depend on certain bulk orders coming through. Talks are on with defence officials who are keen to source a vehicle that doesn’t make noise for patrolling. Aslov will have to make a vehicle to their specifications. Having indigenously built the Hyena from scratch, Nagaich and team are confident of customising it to meet client requirements.
The Russian Connect
Except for the battery that isn’t available in India, everything about Hyena is Indian, including its founders. What then explains the company’s name, ‘Aslov Automotives’? On suggesting that it sounds like a Russian vodka, Nagaich reveals the story behind the name.
While work started three years ago, when they tried registering the company name, they realised all the names were taken. Even the surname Nagaich wasn’t available, the father and son duo found.
On deputation from the Indian Navy, senior Nagaich had been posted in Russia for two years when Mohit was four or five years old. Aslov was the name of a Russian store possibly ingrained in his subconscious, recounts the junior Nagaich.
A Crowded Market?
There are giants like Hero Electric already in the space as well as well-funded players like Ather Energy. Aslov’s Nagaich is well aware of the competition and what his Hyena and forthcoming models will be up against. He is betting on a ring-fenced business model where the unit metrics works in favour of the bottom line from day one. The stated reason for his confidence though is the differentiated design and performance of the Hyena. He also notes that for makers of petrol engine vehicles to fully transition to electric will take time, while this is his core.
The response to Hyena will determine the road ahead for Aslov. Its MD does not rule out high speed motorcycles or scooters but underlines that Aslov’s pricing thanks to a ground-up approach to manufacturing will be lower than comparable competition in each space.
Nagaich surmises, “People who bought scooters earlier had a very bad experience and that gave the entire category a bad reputation. We are very confident of the product and the biggest differentiator if you ask me, is the price at which we have managed to bring such a product to the market. In hilly regions like Himachal Pradesh, the ruggedness will be a big difference. In cities too, it is a low maintenance, high performance vehicle.”
We will have to ride a Hyena to endorse his claim. And the entrepreneur’s confidence makes us want to. Meantime, a fleet of workers in Bhopal and Pune will be hoping that Nagaich’s projections for the Hyena come true. For their sake and that of the planet, we hope so too.