Delhi-based electric vehicle manufacturer, Lohia Auto Industries, part of Rs 600 crore Lohia Group, is all set to enter the Gujarat market with its range of electric three wheelers, two-wheelers as well as diesel three wheelers by next month.
While the company has been selling diesel three-wheelers and electric two wheelers for a while now, the electric three wheeler is a new segment for them, and it is planning to enter markets like Rajasthan, Uttar Pradesh, Orissa, Haryana and Punjab with these vehicles. As Ayush Lohia, chief executive officer of Lohia Auto Industries said, "We have just started the electric three-wheeler segment, and already have approvals from UP, Rajasthan and Orissa governments to enter those markets. We are waiting for a nod from Haryana and Punjab. As for Gujarat, we plan to launch next month."
The company has a manufacturing facility at Kashipur in Uttarakhand where it has a capacity to make 100,000 two wheelers and 40,000 three wheelers per annum, and is now utilising hardly 5-10 per cent of its capacity. It has sold around 25,000 two wheelers since the plant became operational in 2008-09.
Lohia said that the company expected to sell around 400-500 vehicles in Gujarat every month. The electric three-wheelers would be priced around Rs 1.1 lakh, while the two wheelers are priced between Rs 25,000-30,000 after subsidy. As of now, the Centre provides a subsidy of Rs 7,500 for two-wheelers which can go up to Rs 26,000 for those using lithium ion batteries. For three-wheelers, however, there is no subsidy.
Lohia added that while there is cost of replacing the battery every two years (around Rs 25,000 is the price of the battery), the overall maintenance cost or cost of ownership is very low. "Compared to a petrol three-wheeler, the cost of running an electric two wheeler is around Rs 1-1.5 per km, about one-third the cost," he claimed.
Lohia Auto registered a turnover of Rs 100 crore in FY15, and did not make profits. Lohia said that as a new electric vehicle company, it would take some time before it could break even. Lohia Auto, however, sees huge potential in the public transport space.
