What was the original idea behind TAV Electric and how did the business evolve?
We wanted to build electric powertrains for drones and aviation but then covid happened. That is when we decided to pivot to the micromobility segment as e-bikes grew at a rate of 20 per cent. Eventually, our business model became e-bike oriented, making their powertrains.
We design and develop our own electric power train technology, including electric motors for e-bikes. We developed a mid-drive electric motor conversion kit that allows users to convert their existing bicycles into e-bicycles. The kit includes the motor, battery and electric accessories and can be installed within 60 minutes. The system senses the riders pedalling input and adjusts the electric assistance accordingly. Our customers range from individual users to large OEMs and emerging mobility. We sell online through our stores in Australia and India, as well as through Amazon. We also supply electric motors to companies like TI Cycles and to smaller startups developing e-bikes using Indian-made mid-drive powertrains.
What makes TAV different?
The key difference is design and development. Rather than importing from China, we develop every single one of our products in India and design the components for Indian riding conditions. Our diffrentiation lies in the integration of the motor, controller, sensors and mechanical interfaces into a complete power train platform developed in house. Next is the powertrain technology, where we use mid-drive-based power technology that offers two times more performance and better range compared to hub motors.
Are you looking to enter any other vehicle segments?
Our immediate roadmap is focused on expanding in micromobility, building electric bikes and powertrains for cargo electric cycles and electric bikes. We are always trying to find a niche where we can really add value with our knowledge, production facility and engineering capability. Since the vision and idea of the business started from drone technology, we want to build a drone business segment. We have not reached that stage yet, but that is something we always look into.
How did you arrive at the India-Australia business model?
Initially, we were focused on testing the market and figured out a strategy where we would have a design and development centre in Australia. The market is highly regarded for its innovation. And when it came to manufacturing, Indian market offered a cost advantage along with a strong supply chain ecosystem. So we decided our operational model to have its design and engineering base in Adelaide while manufacturing operations are anchored in Chennai.
What role does South Australia play in TAV Electric’s R&D and product development?
Adelaide has a strong cycling culture. This gives us a lot of inputs for designing our powertrain components. Our partnership with Flinders University has provided access to advanced laboratory for developing our electric motor technology. We also have an active relationship with the University of New South Wales. These technology development and R&D inputs are the main reason for positioning our R&D there.
Can you brief on your funding and growth?
We are a seed-funded business and have raised 1.2 million USD and marching towards raising 5 million USD. As we own the entire technology, we expect revenue to quadruple. Our product line is being expanded to conversion to electric bikes and native bikes under our own brand. This would increase our revenue by five times in the next three to five years. Our products have reached customers across Norway, Africa, Sri Lanka and Singapore. In India, we have shipped to Jammu and Kashmir, Himachal Pradesh and Uttarakhand.
How have your sales been?
TAV Electric has sold more than 1000 conversion kits globally. Depending on the configuration, our convertion systems are typically priced around Rs 30,000 – Rs 40,000 range. The focus right now is to tap into the middle of the pyramid by catering to the mass-premium segment of the Indian market.
What are some of the key challenges you have faced?
One of the key challenges has been competing with lower cost imported products and selling them at a cheaper cost. Since we are doing our own R&D and manufacturing, we had to convince customers about the value. The other challenge is operating across Australia and India, with our co-founding team split between two different time zones. But over time, we figured out our own workflow to manage the business across both markets.