Haryana-Based EV Startup Plans Three-Wheeler Expansion Under Tanga Brand

Zelio E-Mobility Targets Three-Wheeler Market

Haryana-based electric vehicle startup Zelio E-Mobility Ltd. is preparing to expand into the e-three-wheeler segment under its Tanga brand. The company aims to start operations at a new manufacturing unit by April 2026. Zelio anticipates that three-wheelers could account for approximately 30–40 percent of its revenue over the next few years.

Current Operations and Capacity of Zelio E-Mobility

Zelio operates a Hisar plant that produces low-speed electric two-wheelers under the Zelio brand. These vehicles primarily target students, elderly users and short-distance commuters. The plant has an annual capacity of 72,000 units in a single shift and as of 31 March 2025, was operating at around 52 percent capacity.

Shubham Garg, Chief Financial Officer, said, “As utilisation increases, we may add shifts to optimise output and meet market demand.” Zelio has also built a dealer network of more than 300 outlets to strengthen its reach.

Zelio E-Mobility: Strategic Investment in New Facility

The company plans to invest around Rs 20 crore for the new three-wheeler unit. An additional Rs 19–20 crore will be allocated for debt repayment, working capital and research and development. Shubham Garg explained, “Our immediate focus is on the plant.”

When asked why the expansion is being undertaken despite moderate utilisation of the existing plant, Shubham Garg said, “The new facility is expected to support diversification. Our upcoming three-wheeler line will likely need a dedicated unit. Operating multiple plants could reduce reliance on a single location and help manage operational risks.”

Zelio E-Mobility: Financial Performance and Funding

Zelio posted revenue of ₹172 crores in FY 2025, with ₹21 crores in EBITDA and ₹16 crores in profit after tax, for a margin of 9.29 percent of revenue. The company had a net worth of ₹26.67 crores. From FY 23 to FY 25 the company achieved revenue CAGR of 83% and PAT CAGR of 128%, reflecting growth from a small base.

The company plans to fund its expansion, debt repayment and working capital needs through an SME IPO approved by the Securities and Exchange Board of India. The IPO will raise Rs 78 crore via a listing on the Bombay Stock Exchange and is managed by Hem Securities Ltd. It opens for subscription on September 30, 2025, and closes on October 3, 2025. The issue includes 46.2 lakh fresh equity shares and 11.4 lakh shares offered for sale, with a price band of Rs 129–136 per share.

Shubham Garg noted, “Working capital is the main requirement in this sector. We will also focus on R&D to improve technology and designs.”

Zelio E-Mobility: Future Expansion Plans

While the immediate focus is on the Tanga three-wheeler facility, Zelio is gradually increasing localisation of components to potentially benefit from future policy support or EV initiatives. Looking ahead, the company may consider setting up additional plants in southern and eastern India to reduce logistics costs.

For more articles and news, stay updated with 91trucks. Subscribe to our YouTube channel and follow us on Facebook, Instagram, and Linkedin for the latest videos and updates from the automotive world!