Gensol Engineering’s shares surged nearly 7% on Wednesday after the construction engineering company announced that its electric vehicles subsidiary had received certification from the Automotive Research Association of India (ARAI) for its upcoming electric vehicle (EV).

Gensol Engineering’s shares hit an intraday high of Rs 1,270, 6.67% higher than its previous closing price on the National Stock Exchange (NSE). At 10:30 am, the stock was trading 2.05% higher at Rs 1,214.85.

According to Gensol’s exchange filing dated February 28, its subsidiary Gensol Electric Vehicles Pvt Ltd has received the certification and approval from the ARAI for its upcoming compact EV. The company added that this accomplishment paves the way for the EV’s official launch and sale in the Indian market. 

The process of ARAI certification evaluates a vehicle’s performance, safety and compliance with vehicle regulatory norms. This certification culminates the vehicle homologation process, which involves testing vehicles both in controlled lab environments and on diverse terrain conditions. 

The compact two-door, two-seater EV will come with features like ample boot space, a moonroof, in-cabin driver assistance technology, a comprehensive technology stack and AI-driven cloud analytics. The modern electric car will be manufactured at the company’s greenfield plant in Chakan, Pune, with an annual production capacity of 30,000 units.

Gensol Engineering Chairman and MD Anmol Singh Jaggi said that the company is committed to bringing its first made-in-India EV to the market that meets the highest safety, quality, and performance parameters standards and is compliant with ARAI regulations.