KOCHI: In a major fillip to Kerala’s ambitious plan to bring out one million e-vehicles within the next three years, Hess AG, the Swiss e-bus giant, will set up its manufacturing unit in Kochi. The company aims to transform the fuel-driven bus transport system to a fully electric one. Hess AG is collaborating with the state government, Kerala Automobiles Ltd (KAL) and Kottayam-based chassis maker Kondody Motors through a joint venture (JV) to set up the manufacturing unit. “As per our agreement, we will transfer our technology to KAL,” Hess chief executive officer Alex Naef told Express on the sidelines of ‘Evolve’, Kerala’s first ever electric mobility expo.
“Hess will provide the technology, key components and assemble the buses in Kerala. Later, the JV will build chassis of the e-buses. The manufacturing unit will come up in Kochi and we are in the process to finalise the location. The first fleet will be manufactured in nine months,” said Naef.
The manufacturing unit will pave way for employment opportunities for engineering graduates from the state. “The joint venture has an enormous potential to generate employment in the state. Though we are not in a position to specify the number, the collaboration will definitely bring in new jobs, new possibilities in this economic environment. The company will recruit professionals who have completed their engineering degrees from universities within the state,” he said.
Hess AG, which has over 80 years’ experience in manufacturing electrical buses, is planning to customise their fleets according to Kerala’s requirements. “The bus manufacturing process is completely a ‘local’ business and depends on various factors like climate, routes and size of the fleet. In Europe, the latest model of e-bus is 30-metre long with a carriage capacity of up to 300 passengers. Many of them are becoming an alternative to metro rails and trams. But it won’t be viable in Kerala. We are aiming to bring in a model system and customise it to make a tailormade solution for Kerala,” he said. A total of 3,000 buses will be put out in the first phase and the company focus on a long-term approach for Return on Investment (RoI).
“We have vast experience in how to ramp up our supply chain to make the venture financially viable. Hess is looking at it as a long-term investment. We have a firm belief in this market to generate a sustainable return,” said Naef. However, the Swiss company urged the government to offer full commitment to the investors. “The government needs to ensure its stable commitment as they are investing in the sector for the next 10-15 years. There should be a clear signal that they are investing in something which will be the future,” he said.