Okinawa Autotech to invest Rs 1200-1,500 cr in e-two-wheelers in two years

This includes the JV with Tacita; company is in talks with PE firms

Undeterred by the fire incidents involving its scooters, Okinawa Autotech is charging ahead with an aggressive investment plan. It seeks to make the most of the burgeoning demand for electric two-wheelers in India.
 
Jeetender Sharma, founder and managing director, Okinawa Autotech, said his company will invest Rs 1,200 crore-Rs 1,500 crore over the next two years. This includes Rs 1,000 crore in the joint venture (JV) with Tacita, an Italian e-two wheeler maker. Okinawa has 51 per cent stake in the JV.
 
Meanwhile, Okinawa is also in talks with private equity firms to raise around Rs 500 crore.
 
It plans to end the current financial year with 250,000 to 300,000 e-scooter sales against 85,000 units 2021-22. It will expand its dealer network to 650 from the current 500 units.
 
“It’s a learning curve for all of us. We have been in the market for over five years now and have sold close to 200,000 units. One or two odd fire cases shouldn’t be held against us,” said Sharma.
 
He claims that the pace of bookings for the company has remained unchanged and the average monthly run rate has been steady at 12,000 to 15,000 units.
 
“As a responsible brand, we recalled the scooters and revisited the entire process. We are accelerating efforts to educate the customers on charging and usage of the vehicle,” he said.

 

On whether the company has got the report submitted by the expert committee to the government on fire incidents, he said, so far, “there’s no formal report shared by the government with the company.”
 
The Gurugram-based firm, the second largest in India’s nascent e-two wheeler market, has seen at least two incidents of fire involving its models in a span of six months.
 
Following the repetitive fire incidents, Okinawa Autotech recalled 3,215 of its Praise Pro scooters last month, becoming the first e-two wheeler maker to do so.
 
The partnership with the Italian firm will give Okinawa a technical edge to come out with better products, said Sharma. The JV with Tacita will make scooters as well motorcycles.
 
Tacita will design and develop the models at its headquarters in Italy.
Okinawa, on the other hand, will work on development of the powertrain, battery packs and battery management system with the Italian team in India.
 
The first models of the JV — which include a scooter and a high-end performance motorcycle — will roll out in 2023.