Micromax is reportedly looking to enter the electric vehicle manufacturing space in India. The New Delhi-based phone maker, which faces stiff competition from Chinese brands in the country, has reportedly cut jobs across the country and senior executives have exited the company. The developments – which include starting production of electric vehicles in the country to compete with offerings from Ather Energy, Matter Aera and Ola Electric – come after Micromax saw continued declines in smartphone shipments in the country.
According to TechCrunch ReportThe layoffs at Micromax and the exit of executives including chief product officer and chief commercial officer over the past few months are the result of the company’s attempt to move into electric vehicle manufacturing. Co-founder Vikas Jain, who will succeed co-founder Rahul Sharma as managing director after his resignation in April 2021, has reportedly also left the company, according to reports.
The smartphone maker overtook market leader Samsung in August 2014 to become India’s largest smartphone maker. Back in 2014, the company announced that it would offer smartphones running Microsoft’s mobile operating system in addition to Android smartphones. A year later, the company also became the tenth largest mobile phone brand. However, the arrival of Chinese smartphone makers such as Xiaomi, Oppo and Vivo and their competitive pricing made it difficult for the brand to maintain its popularity in China in the ensuing years.
In February, company founders Rajesh Agarwal, Sumeet Kumar and Vikas Jain launched a new company called Micro Max MobilityCiting three former employees, the report said the new venture would initially focus on two-wheeled electric vehicles. Two sources also told TechCrunch that the company is revamping an office in Gurgaon as part of its foray into mobility.
While Micromax has yet to formally announce its plans, its so-called electric vehicle venture will compete in a busy market that includes popular brands such as Ather Energy, Matter Aera and Ola Electric. The four-wheel electric vehicle segment already includes several other brands such as Tata, Hyundai, MG, Maruti and BYD, which offer a range of vehicles at various price points in the country.