Bernard Walsh - Hot Irishman
This company has gone from being about 40pc to 90pc export-based in five years.
ENTREPRENEURS
John Keohane
Verde Autos
John Keohane is tapping into the potential of the green economy. In 2007, he set up Verde Autos, an electric vehicles company, along with two silent partners.
Verde Autos produces electric car and commercial ranges, as well as an electric scooter, which moved into the Top 10 out of 38 brands of scooters sold in Ireland in 2008.
“When we set up there was very little happening in the electric vehicle industry. Anything on the market was limited in terms of performance, and the cost base was high for people,” says Keohane.
“One of the biggest problems with greener, environmental products at the moment is they are associated with high costs. We’re trying to bring them mainstream. It should make economical sense to buy an electric car.”
Company history
Keohane has a background in finance, having worked in banking for a number of years. He has made a six-figure investment in the business, having funded it privately and through a bank loan.
In business now for almost three years, he says the first year was very tough, but he spent it trying to market the product and carve a niche in the motoring industry.
Tide is turning green
However, the tide has started to turn, and despite the motor industry seeing a 62pc drop in sales last year, Verde Autos increased its number of sales, mostly in its commercial range. The company has shifted its focus to the commercial-vehicle sector, launching a commercial range, which is designed by Verde Autos but manufactured in China, in April 2009. It has sold a half dozen units per month since then.
Keohane says interest in the commercial range has been buoyed by a number of grant aids from Sustainable Energy Ireland.
The Accelerated Capital Allowance, meanwhile, is a tax incentive for companies paying corporation tax that allows them to write off 100pc of the purchase value of qualifying energy efficient equipment, which includes electric vehicles.
With the Government setting targets to have 10pc of all vehicles in the State electrically powered by 2020, Keohane is upbeat about the market.
Also, in 2009, the ESB began to roll out on-street charging points for electric cars. The electricity giant is in the process of rolling out 20 charging points, with 10 in Dublin, six in Cork and four in other locations on the route.
Keeping the export market in mind
Plans are also under way to standardise recharging systems for cars in Europe, which is good news for Verde Autos. The company has been delving into the European motor market, as it distributes Verde scooters in France and has just started to distribute its car range in Portugal.
“The Irish market really is a very small market, so any company setting up should always have the export market in mind,” says Keohane.
In 2009, Verde Autos saw a massive 80pc growth in sales, and is expecting growth of 50pc this year. Keohane enviseages huge growth over the next year or two.
“The reality is we’re moving to a renewable-energy future, so electric vehicles will become more popular,” he says.
Read about other eco entrepreneurs Mark Lowen of Renewable Energy Systems and John Walsh of Carbon Decisions.
