The company builds battery packs, motors internally
It relies on partners for battery cells
Simple Energy has developed light rare-earth motors that deliver performance comparable to heavy rare-earth alternatives
It has sold nearly 5,000 such scooters
Electric vehicle manufacturers need to strike a balance between backward integration and import dependence because making everything in-house may not be feasible from a business point of view, says Shreshth Mishra, co-founder of electric two-wheeler startup Simple Energy. He said that before building any component in-house, the company evaluates the advantage and value it brings to the final product.
The company builds battery packs in-house but not the cells that go into them. “They are the most critical and costliest component of an EV and define the product’s lifecycle. That is why we chose to build them in-house, so we can ensure reliability and pass that confidence on to customers,” Mishra says.
However, there are areas where in-house manufacturing does not make sense, he adds. “For instance, we do not manufacture cells ourselves, as that is a completely different line of business. Instead, we work with strong partners who support us with testing and validation at the cell, pack, and vehicle levels. So it is always a comparison between making and buying—evaluating cost, value, and reliability—before deciding the best approach.”
Simple Energy’s competitor Ola Electric has developed battery cells in-house. It has also developed rare-earth-free motors, becoming the first Indian OEM to do so. The moves were aimed at cutting import dependence on China for battery cells and heavy rare earth motors.
Mishra said that Simple Energy has also developed a light rare-earth motor that delivers similar performance to a heavy rare-earth motor. The company has sold close to 5,000 scooters operating on these motors.
“This again comes back to our make-versus-buy decisions. The decision to make heavy rare-earth-free motors in-house helped us navigate this challenge. Going forward, we continue to work on new technologies to secure our supply chain, because there are external factors beyond the control of any single company. We have to be prepared for such challenges that may arise in the future,” Mishra said, explaining the idea behind making motors in-house.
Simple Energy has recently launched its Gen 2 scooter portfolio, led by the new flagship Simple Ultra with a claimed 400 km IDC range. The company claims the Simple Ultra is the longest-range electric scooter in the country. It has also introduced upgrades for the existing Simple OneS and Simple One electric scooters.
