Japan Market Entry Potential? Marubeni Invests in Indian Electric Motorcycle Company River

On June 27, 2024, Marubeni Ventures, a subsidiary of the general trading company Marubeni Corporation, announced that it had invested in World of River Limited, Inc., a North American company that manufactures and sells electric motorcycles in India. This investment is intended to support the expansion of River's business.

This investment is part of global efforts towards carbon neutrality, and the motorcycle industry is actively developing eco-friendly technologies. India's government, in particular, has set a target of converting 80% of new two-wheeler sales to electric motorcycles by 2030, suggesting a very high growth potential for the electric motorcycle market.

India has a very high motorcycle usage rate, with approximately 18 million new motorcycles sold annually. The market size is expected to expand further with population growth. In this context, switching from gasoline engine motorcycles to electric motorcycles is expected to significantly reduce CO2 emissions, leading the Indian government to have high hopes for this sector. Indeed, the electric motorcycle lineup in India began increasing in 2022, and the market is rapidly growing, with electric motorcycles accounting for about 4% (630,000 units) of new vehicle sales in 2023.

River has built its own factory covering approximately 11,000 square meters on the outskirts of Bengaluru, India's fourth-largest city and a hub for the IT industry, and is producing the electric motorcycle "Indie," which was launched in the fall of 2023. Indie is a model with a unique, trapezoidal dual-seat design and practicality. In terms of domestic brands, it's similar in size to 150cc class city commuters like the Honda PCX160 or Yamaha X FORCE. It features a motor with an output of 6.7kW (9.1ps) / 26Nm and a 4kWh lithium-ion battery, achieving a top speed of 90km/h and a driving range of 161km (India IDC mode).

Through this investment, the Marubeni Group plans to provide River with the capital needed to expand its business and leverage the Marubeni Group's expertise and network to support River's growth. While specific strategies like sales in Japan or joint development have not been disclosed yet, this is a project worth watching for its future developments.