Gensol Engineering Limited, a company based in Ahmedabad, has signed a memorandum of understanding (MoU) with the Gujarat government to invest Rs 2,000 crore for setting up an electric vehicle (EV) manufacturing plant in the state. The MoU was signed as part of the investment promotion activity for Vibrant Gujarat Global Summit 2024.
Shares hit upper circuit on announcement
The company’s shares rose 5% to hit their upper circuit limit on Tuesday after the announcement. The stock has gained over 270% in the past one year, making it one of the best performers in the EV space. The company has a market capitalization of Rs 1,200 crore as of January 9, 2024.
State-of-the-art facility and product pipeline
The proposed EV manufacturing plant will be a hub of innovation, producing a wide array of state-of-the-art electric vehicles spanning various segments, including urban transportation, fleets, last-mile delivery, freight, and passenger vehicles. The company claims to have a disruptive and unique reverse trike design that is versatile and aspirational. It also holds three awarded patents, with multiple in process, for cutting-edge technology such as Vehicle Control Unit (VCU) and Automated Driving (ADAS) systems. The company aims to start production in July 2024 and roll out 10,000 to 12,000 cars in FY24. It also plans to debut its first electric car in March 2024. The electric car is expected to have a range of 200 km, a top speed of 80 kmph, LED headlights, alloy wheels, conventional door handles, a blacked-out roof, an electric sunroof, a large free-standing touchscreen infotainment system, and AI-based cloud analytics.
Sustainable and social impact
The company is committed to sustainable manufacturing and charging infrastructure. It prioritizes eco-friendly practices, optimizing energy efficiency, reducing waste, and ethically sourcing materials. It also partners with renewable energy providers to power its manufacturing plants by clean and renewable sources like solar, wind, and hydroelectric power. The company says that its vehicles will create social impact by improving public health, reducing urban air pollution, driving clean energy growth, and creating job opportunities. The company expects to generate over 2,000 direct and indirect jobs through its EV plant and its subsidiary BluSmart Electric Mobility, which is an EV-only ride-hailing service provider.