Zelio E-Mobility has launched a new electric two-wheeler manufacturing plant in Coimbatore, Tamil Nadu, with a 60,000-unit annual capacity. This expansion aims to capture growing demand in Southern India and supports the company’s goal of expanding its dealer network to 550 locations this fiscal year.
Zelio E-Mobility has scaled its manufacturing network by opening a new facility in Coimbatore, Tamil Nadu. The plant, which covers about 39,000 square feet, adds an annual production capacity of 60,000 electric scooters. This addition brings the company’s total manufacturing capacity to 2.4 lakh units annually spread across four locations, including existing sites in Haryana and Odisha.
The Coimbatore site will handle assembly, warehousing, and logistics, specifically focusing on the company's current electric two-wheeler lineup. With a capital investment of up to ₹1 crore, the project is designed to shorten supply chains and improve product availability in southern states like Tamil Nadu, Karnataka, and Kerala. In the initial phase, the company expects to produce between 24,000 and 30,000 units, with volumes scaling based on consumer demand.
Financial Growth and Market Position
The expansion follows a period of strong financial performance for the company, which reported revenue of ₹313.68 crore for FY2025-26, marking an 81.8% increase compared to the previous year. By establishing a manufacturing hub in the south, the company aims to reduce logistics costs and improve service times for its growing dealer network. Zelio currently operates more than 400 dealerships across 25 states and intends to increase this footprint to 550 dealerships by the end of the current financial year.
While the company is aggressively expanding its capacity and dealer count, investors may monitor how effectively the firm manages its working capital and operational costs as it scales. The electric two-wheeler market in India is highly competitive, featuring established players and numerous new entrants. Future growth will depend on the company's ability to maintain its sales momentum and successfully ramp up utilization at the new Coimbatore plant. Key monitorables for the coming quarters will include the actual production ramp-up at the new site, the efficiency of the expanded dealer network, and whether the company can maintain its current growth trajectory amidst fluctuating demand in the electric vehicle sector.