Oben Electric looks to make inroads into India’s reluctant e-motorcycle market via deep localisation, in-house R&D

Bengaluru-based Oben Electric, which recently launched the Rorr EZ Sigma—a next-generation electric motorcycle, is planning to raise ₹420 crore ($30-50 million) to scale up operations and expand nationally.

“We’re expanding through a dealer-led model, a standard practice in the auto and EV industry,” Madhumita Agrawal, founder and CEO of Oben Electric, told Fortune India. “Dealers take responsibility for showroom setup and inventory, while we will be investing in brand building, marketing, and training to ensure consistency and quality across all locations.”

Founded in August 2020, Oben Electric is positioning itself as a serious contender in India’s largely untapped electric motorcycle space. Unlike electric scooters, which have seen a surge in adoption, electric motorcycles contributed less than 1% to EV sales as of FY25.

Oben looks to change that. With a current retail footprint of over 50 stores across 14 states, it is targeting to grow to more than 100 showrooms across Tier I, Tier II, and Tier III cities by the year-end, and more than 150 by FY26. To support this growth, the company is evaluating setting up a second manufacturing facility.

Its expansion plan is backed by a sharp focus on R&D and vertical integration. The company has invested close to ₹100 crore in in-house research and product development and currently operates a 3.5-acre manufacturing facility in Bengaluru with a production capacity of 1 lakh units per year. With 99% localisation, including an in-house manufacturing of its lithium-iron-phosphate batteries and motors, the company not only controls quality and costs, but is also planning to emerge as a component’s supplier in India and globally.

As of FY25, Oben has sold 2,000 units and aims to scale that number to 12,000 in FY26. The company’s current offerings—the Rorr EZ, the Rorr EZ Sigma, and the Rorr—are priced ₹99,999, ₹1,27,000 and ₹1,49,999 respectively, and are built on its proprietary ARX platform. The startup has also filed over 25 patents related to EV technology and components.

While electric scooters have seen a steady rise in adoption, electric motorcycles continue to struggle. Electric scooter penetration in India has reached around 16-18% over the past five years. In contrast, electric motorcycles have a market share of less than 1%.

One of the key reasons is the limited availability of models in the mass-market segment. The sub-125cc ICE category dominates sales, yet only one or two electric motorcycle options exist today, mostly from startups. The electric scooter market only took off once traditional manufacturers entered the fray, offering more choice and familiar performance.

Price is another barrier. “Delivering like-for-like performance in e-motorcycles will be significantly more expensive compared to ICE counterparts,” said Rohan Rao, partner, automotive and lead–electric mobility, KPMG in India.

To tackle this, Oben is betting on its newly launched O100 platform, which it claims can enable production of electric motorcycles priced under ₹1 lakh. The platform targets India’s 100cc motorcycle buyers, a segment that accounts for about 30% of the overall market. The aim is to attract cost-conscious consumers outside urban centres.

Hemal N. Thakkar, senior practice leader and director at Crisil Intelligence, agrees. “Most e-motorcycle buyers today are early adopters or enthusiasts in urban centres, while mainstream consumers, particularly in Tier II and rural areas, are hesitant. Unlike scooters, which are often used for short urban commutes, motorcycles are seen as versatile vehicles suitable for longer distances and rougher terrain, making issues like range anxiety and sparse charging infrastructure more pronounced,” he said.

Most mainstream two-wheeler manufacturers are yet to launch EV motorcycles at scale, but a few startups, namely Oben, Revolt, and Ultraviolette, are looking to establish an early lead through deep localisation and in-house R&D.

“ICE motorcycles offer high mileage and therefore, a lower operating cost per kilometre. This makes it difficult for e-motorcycles to achieve total cost of ownership (TCO) parity within the next 2–3 years, which means that for e-motorcycles to gain traction within the mainstream motorcycles segment will take some more time,” said Rao. According to him, motorcycles make up about two-thirds of total domestic two-wheeler sales in India. Within this, nearly 75% fall under the affordable sub-125cc segment.

While many EV players downplay the need for servicing, Oben sees it as a critical piece of the ownership experience, especially in Indian conditions where connectors, brakes, and suspension components undergo higher wear and tear. “We’ve integrated dedicated service centers with every store to ensure accessibility and build long-term relationships with our customers,” Agrawal added.

Oben’s focus on vertical integration is also tied to its profitability roadmap. Instead of burning cash on subsidies and outsourced manufacturing, Oben has taken a deliberate route: designing its platform from scratch, controlling its supply chain, and manufacturing critical components in-house.

As a result, the company claims to be on track to achieve profitability within the next two years. “You can’t build a sustainable business on just branding and features. From day one, our fundamentals have been clear—control costs, own the IP, and think long-term,” said Agrawal.

While many EV players have explored B2B partnerships with logistics and ride-hailing platforms, Oben is consciously staying focused on the B2C segment. “The B2B model is margin starved. It may offer volumes, but the economics just do not justify a pivot in strategy for us at this stage,” Agrawal explained. “We want to build an aspirational consumer brand.”