Strategic Expansion Boosts Annual Capacity to 1.8 Lakh Units, Fuelling Growth Across Eastern and Southern India
India’s electric vehicle landscape is witnessing rapid scaling as Zelio E-Mobility commissions a new manufacturing facility in Cuttack, Odisha, marking a major strategic expansion aimed at strengthening its footprint in eastern and southern markets. The move elevates the company’s total annual production capacity to 1.8 lakh electric units, positioning Zelio to better serve growing demand across key regions.
The Odisha plant, built with an investment of under ₹3 crore, is now fully operational and expected to begin contributing to Zelio’s revenue immediately, according to company statements. The facility — focused exclusively on electric two-wheeler production — will help the company meet surging EV demand while improving delivery efficiency and supply chain performance.
Capacity Expansion: From Hisar to Cuttack
Prior to the new facility’s commissioning, Zelio’s total installed capacity stood at 72,000 units per annum, anchored at its existing plant in Hisar, Haryana.
In tandem with the Odisha facility, the Hisar plant has also undergone significant process-level optimisations, including the installation of an extended conveyor system and additional machinery, boosting its annual output potential to 1,20,000 units.
The newly commissioned Cuttack facility contributes an additional 60,000 units per year, resulting in a robust combined annual production capacity of 1,80,000 units across Zelio’s manufacturing network.
This expansion reflects an overall 150% increase in production capacity — a considerable leap for one of India’s emerging electric two- and three-wheeler makers.
A Strategic Footprint for Eastern and Southern Growth
The decision to establish a regional production hub in Cuttack comes as Zelio identifies Odisha and West Bengal among its most dynamic and rapidly expanding markets. Strong customer acceptance and high growth projections in these states have made eastern India a priority for the company’s expansion strategy.
By shifting production closer to its core customer base, Zelio aims to significantly reduce delivery lead times, which previously extended up to a week when vehicles were shipped from Haryana. The new facility will also help lower logistics costs and strengthen supply chain agility — crucial advantages in a highly competitive EV market.
Zelio’s Managing Director, Kunal Arya, said the move will bolster the company’s ability to serve riders and dealers with faster deliveries and improved after-sales support, reinforcing its customer-centric expansion strategy.
Economic and Employment Impact
In addition to boosting production, the new Cuttack facility is set to create local employment opportunities, with an expected 60 to 100 jobs across production and operations. The facility’s launch also aligns with broader efforts to catalyse EV-related industrial development in eastern India.
Zelio is reportedly in ongoing discussions with the Odisha government regarding potential incentives and support mechanisms to further enhance the plant’s operational impact and sustainability.
Financial Backdrop and Growth Trajectory
The launch of the Cuttack facility follows a strong showing by Zelio in H1 FY26, when the company reported consolidated revenue of ₹134.78 crore and a net profit of ₹11.87 crore.
Earlier this year, Zelio completed its SME IPO of ₹78.34 crore, with approximately ₹36 crore in unutilised proceeds earmarked for capacity expansion and infrastructure development — including the Cuttack plant and other future facilities.
With a dealer network spread across more than 337 outlets in over 20 states, Zelio continues to expand its retail and service presence across India, particularly in Tier 2 and Tier 3 cities where EV adoption is accelerating.
Positioned for India’s EV Future
The strategic capacity boost positions Zelio to capitalize on rising EV adoption trends in India’s two-wheeler and three-wheeler segments. As consumer interest in sustainable, affordable mobility grows, companies are increasingly focused on expanding production footprints to closely align manufacturing with demand hotspots.
The enhanced capacity also gives Zelio greater operational leverage to navigate supply chain dynamics, manage inventory more effectively, and potentially reduce delivery costs — all essential components of competitiveness in the burgeoning EV ecosystem.
Industry observers note that regional manufacturing hubs such as the Cuttack facility can help EV makers achieve faster turnaround times and stronger after-sales support, two factors that increasingly influence buyer decisions in the electric vehicle market.
Outlook and Growth Prospects
Looking ahead, Zelio aims to have the new facility contribute a significant share of overall revenues by FY26–FY27, driven by accelerating EV adoption in eastern and southern India.
The expanded capacity also sets a platform for future growth initiatives, including product diversification, deeper market penetration, and enhanced service networks — all of which are critical to capturing a larger share of India’s fast-growing EV market.
As the nation continues its transition toward low-emission mobility, capacity expansions such as Zelio’s new Cuttack plant underline the increasing importance of regional manufacturing strength and supply chain resilience in shaping the next chapter of India’s electric vehicle industry.
