Zelio E-Mobility Opens Fourth Manufacturing Plant in Haryana, Expands Annual EV Capacity by 30% to 3.12 Lakh Units
With an investment exceeding ₹20 crore, the new Hisar facility will manufacture electric scooters and three-wheelers as Zelio strengthens its manufacturing network and targets deeper penetration into Tier-2 and Tier-3 markets.
Indian electric two-wheeler and three-wheeler manufacturer Zelio E-Mobility has expanded its production footprint with the commencement of commercial operations at a new manufacturing facility in Patan, Hisar, Haryana. The plant adds 72,000 units of annual manufacturing capacity, increasing the company's total installed capacity from 2.40 lakh to approximately 3.12 lakh vehicles per year.
The expansion represents a 30% increase in Zelio's annual installed production capacity and marks the company's fourth manufacturing facility in India, following its existing operations in Haryana, Odisha and Tamil Nadu.
According to the company's stock exchange disclosure, commercial production began on October 28, 2026, with the additional capacity scheduled to come on stream during the third quarter of FY2026–27.
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The development comes as Zelio looks to strengthen its distribution network, improve vehicle availability and build a more vertically integrated manufacturing operation.
New Hisar Facility to Manufacture Electric Scooters and Three-Wheelers
Spread across approximately six acres, the new facility has a built-up area of 2,61,360 square feet and incorporates manufacturing capabilities for both electric scooters and electric three-wheelers.
Of the additional annual capacity, 48,000 units are allocated to Zelio-branded electric scooters, while the remaining 24,000 units are earmarked for the company's Tanga electric three-wheelers.
New Plant – Annual Production Capacity
Category | Capacity |
Electric 2W | 48000 |
Electric 3W | 24000 |
Two-wheelers account for two-thirds of the newly added manufacturing capacity.
The company plans to scale production according to dealer demand, product mix and supply-chain readiness rather than immediately operating the plant at its full theoretical capacity.
The new factory also houses in-house fabrication, painting and assembly lines, giving Zelio greater control over certain manufacturing processes.
This backward-integration strategy could help the company reduce dependence on external manufacturing partners, improve production consistency and manage costs as volumes increase.
Zelio Now Operates Four Manufacturing Plants Across India
With the addition of Patan, Zelio's manufacturing footprint spans three states, with a combined installed capacity of approximately 3.12 lakh vehicles annually.
Manufacturing facility | Annual capacity |
Ladwa, Haryana | 1,20,000 |
Cuttack, Odisha | 60,000 |
Coimbatore, Tamil Nadu | 60,000 |
Patan, Hisar, Haryana (New) | 72,000 |
Total | 3,12,000 |
Zelio's Annual Capacity – Before vs After Expansion
The geographical distribution of these facilities could help Zelio improve logistics and vehicle replenishment across its dealer network. Its manufacturing operations in northern, eastern and southern India provide a wider base from which to serve regional markets.
However, the actual operational benefit will depend on plant utilisation, supplier readiness, regional demand and the efficiency of the company's distribution network.
₹20 Crore Investment to Strengthen Backward Integration
Zelio has committed more than ₹20 crore towards the Patan manufacturing facility under its approved capital expenditure programme. A portion of the investment has been funded through proceeds from the company's IPO, while any additional funding requirements are expected to be met through internal accruals.
According to its October 28 stock exchange disclosure, a major portion of the investment is directed towards backward integration, subject to finalisation and board approval.
For smaller and emerging electric vehicle manufacturers, greater control over fabrication, painting and assembly can become increasingly important as production volumes scale.
The investment could support Zelio in three critical areas: improving manufacturing consistency, reducing production-related bottlenecks and strengthening cost control.
The factory is also expected to generate direct and indirect employment across manufacturing, quality control, maintenance, warehousing and local supplier operations. The company has not disclosed a specific employment target.
Revenue Rises 81.8% to ₹313.68 Crore in FY2025–26
The manufacturing expansion follows a period of strong reported revenue growth for Zelio E-Mobility. According to the company, revenue increased by 81.8% year-on-year to ₹313.68 crore in FY2025–26. It also reported a four-year revenue compound annual growth rate of approximately 121%.
Financial indicator | Reported performance |
FY2025–26 revenue | ₹313.68 crore |
Revenue growth YoY | +81.8% |
Four-year revenue CAGR | 121% |
IPO issue size | ₹78.34 crore |
IPO issue price | ₹136 per share |
BSE SME listing | October 2025 |
Zelio states that it has remained profitable since inception, although the latest press release does not provide a detailed profitability breakdown.
The company entered the public markets through its BSE SME listing in October 2025, raising ₹78.34 crore.
Its decision to expand manufacturing capacity using a combination of IPO proceeds and internal resources reflects its stated emphasis on balancing expansion with profitability and working-capital discipline.
Dealer Network Targeted to Cross 550 by FY2027
Alongside manufacturing expansion, Zelio is working to increase its retail presence across India. The company currently reports more than 400 dealerships across over 25 states and is targeting a network exceeding 550 dealerships by FY2027.
That would represent at least 150 additional dealerships over its current reported base.
The expansion strategy places particular emphasis on Tier-2 and Tier-3 markets, where the company sees opportunities to increase adoption of affordable electric mobility.
For these markets, product availability, after-sales support, spare-parts access and dealer viability can play an important role in long-term customer confidence.
Improved manufacturing capacity alone may not guarantee higher sales, but a more geographically distributed production network could help Zelio reduce delivery lead times and support dealer inventory replenishment.
AutoPunditz Analysis
Zelio's recent manufacturing investment highlights the ambitions of Indian EV manufacturers to expand beyond regional markets. The 30% increase in capacity is notable, but it must lead to higher production and sales. Previously, Zelio's capacity utilization was about 40%, indicating underutilization before the expansion. The challenge now is to create enough demand to use the expanded network efficiently.
Allocating 24,000 units to Tanga electric three-wheelers shows a strategy to diversify beyond electric scooters, tapping into markets favoring EVs for cost and mobility benefits. In-house manufacturing could enhance leverage if volumes rise to cover fixed costs. Key metrics to watch include factory utilization, dispatch growth, dealership productivity, margins, and inventory. With four facilities and a capacity of 3.12 lakh vehicles, Zelio aims for growth, supported by the Hisar facility's flexibility for two- and three-wheelers. Success depends on converting expanded capacity into sustainable sales growth. AutoPunditz notes the 30% capacity increase, with the focus now on improving utilization and distribution without sacrificing profitability.
