Emotorad unaffected by US tariffs

EMotorad, an e-bike manufacturer, is set to increase the export of its electric bicycles to the United States. The current 25% tariff on automobiles does not apply to this segment. “EMotorad, or its manufacturing arm Dynem, falls under a different HSN code that applies to electronics, cycles, and scooters rather than traditional automotive categories. Therefore, we are currently unaffected by these tariff changes,” stated Kunal Gupta, co-founder and CEO of EMotorad.

Gupta added that some of the largest brands in the US are actively collaborating with them to develop their e-cycles. “This ongoing engagement from major players, who are typically well-informed about economic and policy shifts, gives us confidence in the strength of our long-term partnerships.” he explained.

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With its new gigafactory in Pune now operational, the company is ramping up production capacity. The company feels confident it can meet the demand in the US and European markets. Currently, China dominates this $50 billion market. However, with the US and Europe imposing additional duties on Chinese electric cycles, Indian electric bicycles have become increasingly competitive.

Gupta said that the gigafactory, the largest in South Asia, complies with all necessary certifications for the US and European markets. 

“We aim to be the first option outside of China for these products. The US is poised to be a significant market for us, and buyers from the US and Europe are continuously looking for suppliers in countries like ours,” Gupta explained.

China dominates e-bike manufacturing with its exports valued at $ 20 billion. Europe has already imposed anti-dumping duties, and the US has increased tariffs to 45%. Gupta noted, “This creates a substantial advantage for us, with at least a 20-25% cost differential. We are more affordable than Chinese suppliers.”

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Even capturing a small portion of this market could lead to significant growth for EMotorad. “In the next three years, we expect to grow more than fivefold from our current position,” he added. The company will export bike powertrains under its brand, which includes the battery, motor, charger, and display—components that make up 60% of an e-bike’s cost. The top markets for EMotorad include the US,

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