Omega Seiki bets on Dubai as export hub with $25m JAFZA assembly plant

Omega Seiki Mobility (OSM), the Indian maker of electric two‑ and three‑wheelers, has opened its first international assembly facility in Jebel Ali Free Zone (JAFZA), announcing a US$25 million (about AED 92 million) phased investment over five years. The company says the roughly 42,000‑plus square‑foot site will assemble its electric two‑ and three‑wheelers, handle storage and spares distribution, and function as an export hub to the Middle East and Africa. Assembly is slated to begin by the end of 2025. In short, the project blends manufacturing with logistics, and the plan is to grow as demand grows.

The new plant is being pitched as both a manufacturing and logistics node. OSM asserts the facility will create more than 100 jobs in its initial phase and accelerate delivery and after‑sales support across the region. “Jafza gives us unmatched connectivity to more than 2 billion consumers and a business environment that enables speed, scale and sustainability,” said Uday Narang, founder and chairman of Omega Seiki Mobility, to Gulf News, adding that Dubai would act as the company’s global launchpad. Honestly, it’s a strategic bet on Dubai’s connectivity, you might say.

Government and market players have welcomed the investment as part of a broader push to anchor clean‑tech supply chains in the UAE. Abdulla Al Hashmi, chief operating officer for Parks & Zones at DP World GCC, noted in a UAE government media office statement that “more manufacturers are turning to Jafza to tap high‑growth markets across the Middle East, Africa and beyond.” The comment echoed JAFZA’s expansion plans, including a multi‑million‑dirham logistics park upgrade intended to add Grade‑A warehousing and strengthen links to Jebel Ali Port. It all feels like a natural alignment, doesn’t it?

The timing mirrors accelerating demand for low‑emission transport in the MENA region. A market study summarized by PR Newswire and attributed to BCC Research projects the MENA electric vehicle market could reach roughly US$14.5 billion by the end of 2029, with a compound annual growth rate around 11.2% for 2024–29. That forecast underpins why manufacturers are keen to position assembly and distribution hubs closer to regional customers. This is one of those cases where geography seems to be doing a lot of the talking.

OSM’s product strategy blends battery‑electric models with transitional fuel options. The company highlights two three‑wheel models—the cargo OSM Rage+ and the passenger OSM Stream—which it says can offer ranges up to 270 km. OSM also promotes fast‑charging and battery‑swapping systems, plus IoT‑based fleet management for real‑time tracking and optimization. Certifications from Indian testing authorities such as ICAT and ARAI are cited, and the company notes its domestic network of more than 160 dealerships has sold over 20,000 vehicles. This seems like a solid baseline, and yes, it’s a fairly standard portfolio for the sector.

Beyond three‑wheelers, OSM has signalled broader ambitions. Industry reporting notes the firm is developing a 9‑metre low‑floor electric bus and a range of electric trucks, and it plans to introduce a CNG‑powered three‑wheeler for select African markets. Autocar Professional reports that OSM regards CNG as a practical “bridge” fuel in places where charging infrastructure remains sparse. The firm is also pursuing charging partnerships: The Hindu covered OSM’s tie‑up with battery specialist Exponent Energy to launch a fast‑charging passenger three‑wheeler and expand rapid‑charger deployment in Indian cities. You see, they’re hedging their bets on multiple pathways.

There are clear opportunities in locating light commercial EV assembly in the UAE. JAFZA’s proximity to the region’s largest port, combined with upgraded logistics capacity, cuts shipping time and import complexity for last‑mile operators. For fleet operators focused on deliveries and urban mobility, locally assembled vehicles can shorten lead times and simplify spare‑parts supply. It seems like a fairly straightforward win, well, at least on paper.

But significant challenges remain. Charging infrastructure across many African and smaller Gulf markets is nascent. While OSM’s fast‑charging and swapping options aim to mitigate range and downtime concerns, widespread adoption will depend on public and private investment in charging networks and on local incentives for low‑emission fleets. Market analysts emphasize that regulatory support, procurement by municipal and private fleets, and fuel pricing will all shape electrification economics in target markets. It’s not a slam‑dunk, that’s for sure.

OSM’s international push also carries commercial risk. Economic Times reporting highlights the company’s target to derive about 30 percent of revenue from exports in the 2024–25 fiscal year, which will require rapid scale‑up of production, distribution and after‑sales support outside India. The company’s claims about range, charging speed and total cost of ownership will face close scrutiny from fleet operators and regulators in each country. A cautious note, perhaps, but a necessary one.

For UAE climate‑tech stakeholders, the JAFZA plant signals what regional logistics platforms may be aiming for: a shift from pure transit hubs to manufacturing and assembly enablers for green mobility. If OSM can deliver reliable products at a competitive cost, the factory could accelerate electrified urban logistics across the Middle East and parts of Africa. Yet the ultimate impact will hinge on parallel investments in charging infrastructure, supportive policy frameworks, and proof that small electric commercial vehicles can meet uptime and total‑cost targets. It’s a promising indicator, with a lot riding on execution.

OSM’s JAFZA plant will be a test case. The company plans to start assembly by the end of 2025; until then, its claims about regional scale, job creation and market reach should be read as ambitions that will be proven only once production lines are running and vehicles enter service.

Source: Noah Wire Services