The JV will not only produce EVs for the Egyptian market but also for other countries in the region such as Morocco, among others
Looking to expand its reach to the African market, Omega Seiki Mobility (OSM) has joined hands with Egyptian e-commerce last-mile delivery firm Rabbit Express to form a joint venture for the same.
OSM will initially export its two and three-wheelers to the African market and later the two partners will set up a manufacturing facility in capital city Cairo, OSM founder and Chairman Uday Narang said.
“Under the alliance with Rabbit, we will initially be sending our electric vehicles from India to them. And then in the second phase, we will be setting up with them a first-of-its-kind factory for electric vehicles, using our EV technology for different products,” Narang said.
OSM will also lend technological support to its Egyptian partner. OSM will hold up to 26 per cent stake in the stake while Rabbit Express will hold the remaining stake.
Narang said that OSM is working in different areas with Rabbit, who are a significant player in the last mile space in the second largest automotive market in Africa. Rabbit Express has a fleet of 5,000 vehicles serving several e-commerce clients in Egypt.
The JV will see an investment of USD 10 million to begin with, and once the manufacturing facility comes into being it is expected to be scaled up to USD 50 million, Hani Mohammed Moshref, Chief Executive Officer, Rabbit Express said. The company is looking at a volume of at least 20,000 vehicles annually through the tie-up, Moshref said.
The JV will not only produce EVs for the Egyptian market but also for other countries in the region such as Morocco, among others, Moshref said, adding that Rabbit is looking to go international and it would avail the opportunity to expand to other markets through the JV.
According to OSM managing director Debrata Mukherji, the JV is expected to get the first mover’s advantage and has the ability to corner at least 30 per cent market share.
“Rabbit Express is going to be the first one (in the segment) to take the lead in electric three wheeler. So, they have a very good chance to reach at least 30 per cent market share and I hope , in three years’ time. It is because before others come we will be the market leader,” Mukherji said.
