Aquila Mobility Systems: Looking Inside Before Looking Out
Background
Aquila Mobility Systems (AMS) is a mid-sized Indian firm headquartered in Pune,
established in 2011 by a group of engineers formerly employed in the automotive
components industry. The company initially focused on manufacturing electric drivetrain
components for two-wheelers and three-wheelers, supplying primarily to domestic OEMs and
a few export customers in Southeast Asia.
By 2025, AMS employed around 850 people and reported steady but unspectacular growth.
While revenue had grown at an average of 12% annually over the last five years, margins had
begun to stagnate. Several competitors, both domestic startups and international firms, had
entered the electric mobility supply chain, offering similar products at aggressive prices.
The board recently appointed a new CEO, Ananya Mehta, with a mandate to “prepare the
firm for the next decade.” Rather than immediately pursuing acquisitions or market
expansion, Mehta insisted that the leadership team first conduct a deep internal review of
what the firm actually possesses, and what it can truly do better than others.
“We keep talking about markets and competitors,” she noted in a leadership meeting,
“but we don’t seem to agree on what really distinguishes Aquila internally.”
Operations and Physical Footprint
AMS operates out of two manufacturing facilities:
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a primary plant outside Pune focused on drivetrain assembly, and
a smaller unit in Nashik dedicated to prototyping and testing.
The Pune plant houses advanced CNC machines, automated testing rigs, and a quality-control
lab that was upgraded three years ago using internal accruals rather than external financing.
While the machinery is not cutting-edge compared to global leaders, it is well maintained,
and downtime is reportedly lower than the industry average.
Inventory management at AMS is conservative. The firm carries higher-than-average
component inventory, which has helped it manage supply disruptions but has also increased
working capital requirements. The finance team believes that tighter cash management could
free up resources, though operations managers argue that flexibility is critical in a volatile
supplier environment.
Technology and Product Development
One of AMS’s earliest investments was in an in-house R&D team. The company employs
120 engineers, many of whom have stayed with the firm for more than six years, an unusual
retention rate in the sector.
Rather than focusing on breakthrough inventions, AMS has specialized in incremental
innovation: adapting existing drivetrain designs to suit Indian road conditions, climatic
variations, and usage patterns. Several design modifications developed internally are not
patented but are embedded deeply in production routines and design templates.
While the company holds a small number of patents, senior engineers believe the real value
lies in tacit design know-how and testing protocols that have evolved through repeated trialand-error with OEM customers.
Brand, Relationships, and Reputation
AMS is not a consumer-facing brand, but within the OEM ecosystem it is known as a
“reliable problem-solver.” Procurement managers from client firms often describe AMS
engineers as unusually responsive during product debugging and scale-up phases.
This reputation has translated into long-term supply contracts with three major customers,
though none are exclusive. Despite this goodwill, the marketing team has struggled to
articulate the firm’s positioning beyond vague terms like “quality-focused” and “engineeringdriven.”
Interestingly, during a recent downturn in the EV market, two customers chose to delay
payments rather than switch suppliers, citing trust built over years of collaboration.
People, Culture, and Organization
Internally, AMS prides itself on a strong engineering culture. Decision-making is
decentralized at the project level, and junior engineers are encouraged to challenge design
assumptions. Formal hierarchies exist, but informal influence often flows to individuals
known for problem-solving rather than job titles.
However, this culture also has limitations. Sales and operations teams often complain that
engineers prioritize technical elegance over cost discipline. Cross-functional coordination
depends heavily on personal relationships rather than formal processes, making outcomes
uneven across projects.
Human resource systems at AMS are relatively simple. Performance evaluations emphasize
learning ability, collaboration, and attitude more than formal qualifications or years of
experience. Training budgets are modest but stable, and much learning occurs informally on
the shop floor.
Strategic Crossroads
At a recent strategy retreat, the leadership team debated three broad options:
1. Expand into new international markets using the existing product portfolio.
2. Move up the value chain by offering integrated drivetrain solutions rather than
components.
3. License select technologies and design templates to smaller manufacturers while
focusing internally on advanced development work.
The debate stalled when it became clear that different executives held very different views of
what AMS’s “core strengths” actually were. Some pointed to physical assets and
manufacturing reliability, others to engineering talent, and still others to customer trust and
reputation.
Mehta concluded the session with a simple directive:
“Before we choose a strategy, we need clarity on our resources, tangible, intangible, and
human, and how they combine into capabilities. Only then can we talk seriously about
competitive advantage.”