Zelio E-Mobility Limited has announced a major capacity expansion, increasing its total installed production capacity for electric vehicles from 72,000 units per annum to 1,80,000 units per annum. The company commenced operations at its new manufacturing facility in Odisha on February 23, 2026, at 4:30 P.M., marking a significant milestone in its growth strategy.

Capacity Enhancement Details

The substantial capacity increase has been achieved through a two-pronged approach involving both facility optimization and new plant commissioning. The expansion represents a 150% increase in the company's manufacturing capabilities.

Existing Facility Optimization

The existing manufacturing facility in Ladwa, Hisar, Haryana has been enhanced from 72,000 units per annum to 1,20,000 units per annum. This enhancement was achieved through process-level optimization, including installation of an extended conveyor belt and additional machinery, with minimal incremental capital expenditure. The existing facility currently operates at approximately 85% capacity utilization for FY 2025-26 projected.

New Odisha Manufacturing Plant

The newly commissioned manufacturing plant is strategically located in Odisha at Khata No. 166/51 & 166/52, Plot No. 52 and Plot No. 51/362, Mouza Bahuda, PS-Tangi, Tehsil Jagatpur, Alarpur, District Cuttack, Odisha – 754025. The facility contributes an incremental capacity of 60,000 units per annum and focuses on manufacturing and assembly of electric vehicles.

Strategic Investment and Financing

The capacity expansion has been financed through internal accruals and existing resources, demonstrating the company's strong financial position. The investment approach included minimal incremental capital expenditure for optimization at the existing plant and strategic investment in the Odisha facility as per the approved capex plan.

Expected Benefits and Rationale

The expansion aligns with Zelio E-Mobility's strategic objective to strengthen its manufacturing footprint and enhance supply chain efficiencies. The company expects the enhanced capacity and new facility commissioning to contribute positively to operational performance. Key anticipated benefits include:

• Increased production capacity to meet growing demand
• Regional supply efficiency and logistics optimization
• Enhanced operating leverage
• Strengthened pan-India manufacturing footprint
• Improved capability to cater to sustainable mobility solutions across India

The capacity enhancement positions Zelio E-Mobility to better serve the expanding electric vehicle market while maintaining operational efficiency across its manufacturing network.

Zelio E-Mobility has announced a substantial expansion of its manufacturing capabilities, marking a significant milestone in the company's operational growth trajectory. The electric mobility manufacturer has successfully increased its production capacity by 70.00%, positioning itself for enhanced market presence and revenue generation.

Production Capacity Enhancement

The capacity expansion has elevated the company's annual production capability to over 1.1 lakh units, representing a major scaling of manufacturing operations. This substantial increase in production capacity demonstrates the company's commitment to meeting growing market demand and expanding its operational footprint in the electric mobility sector.

Future Utilization Projections

Management has projected achieving 85.00% capacity utilization by FY25-26, indicating strong confidence in market demand and operational efficiency. This utilization target suggests the company anticipates robust demand for its products and expects to effectively leverage the expanded manufacturing infrastructure.

Strategic Implications

The 70.00% capacity expansion reflects Zelio E-Mobility's strategic focus on scaling operations to capitalize on opportunities in the electric mobility market. The enhanced production capability positions the company to serve a larger customer base and potentially increase market share. The substantial investment in manufacturing capacity indicates management's positive outlook on business prospects and market growth potential.

The combination of increased production capacity and projected high utilization rates suggests the company is well-positioned to achieve improved operational performance and revenue growth in the coming fiscal years.