The Lohia Group is expanding its electric vehicle portfolio with plans to launch two new two-wheelers and a three-wheeler to cash in on the government's FAME India scheme.
Bullish on the segment, the group is eyeing a turnover of Rs 300 crore from the automotive division -- Lohia Auto Industries in the next three years.
The group, which has a turnover of around Rs 600 crore, has already lined up an investment of around Rs 120 crore to spruce up its manufacturing facility in Uttarakhand.
"We want the auto division t urnover to be around Rs 300 crore by 2018. We are going to achieve this target on the back of our current portfolio and new launches, which start this fiscal," Lohia Auto Industries CEO Ayush Lohia told PTI.
The company plans to introduce two new electric two- wheeler models, two more variants of electric rickshaws and a new electric three-wheeler, besides cruisers and bikes from the stables of 50:50 JV with US-based UM Motorcycles, he added.
"Electric vehicle segment has a huge potential. With the central government rolling out the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, the sector is poised for growth," Lohia said.
The company already sells a diesel-powered three-wheeler.
FAME India scheme, which has been rolled out from April 1, offers incentives on electric and hybrid vehicles of up to Rs 29,000 for bikes and Rs 1.38 lakh for cars.
The scheme envisages Rs 795 crore support in the first two fiscals starting with the current year.
Commenting on the investment plans, Lohia said majority of the capital would be utilised to spruce up its production facility at Kashipur in Uttarakhand.
US-based UM Motorcycles and Lohia Auto had formed a joint venture (JV) last year to roll out a range of motorcycles for the Indian market.
"As we aim to launch one 400 cc cruiser by this fiscal- end and three more bikes during the next fiscal, we need to keep upgrading the manufacturing facility. So, we have lined up this Rs 120 crore investment," Lohia said.
The company's Kashipur plant, which is also being utilised by the JV firm, has an installed capacity to produce 100,000 two-wheelers and 40,000 three-wheelers annually.
Lohia said the production capacity could be further enhanced to around 250,000 two-wheeler units and about 80,000 three-wheelers.
"If we start selling around 7,000-8,000 two-wheelers per month, then we can also look at a new manufacturing site for the JV. By next April, we would be in a position to take a call on this," Lohia said.
The company is also strengthening its sales network by opening zonal offices all over the country. It plans to expand the sales network to 200 outlets from 70 currently by the end of this fiscal.