BSA Motors, a strategic business unit of Tube Investments of India (TII), a part of the Rs 9,582 crore Murugappa Group, today announced its foray into the electric scooter market.
The company is launching five models of its electric scooters in the 250 watt to 800 watt battery categories, under the BSA brand name, in October 2008.
The company has set up a new assembly line and design and testing unit at an investment of Rs 20 crore at its Ambattur factory in Chennai. The company has a capacity to produce 100 e-scooters per day in the low and high speed categories.
The company will invest another Rs 10 crore to double its capacity by February 2009. To begin with the company will launch these scooters in south Indian states and enter north Indian market in the next six months, K B Srinivasan, general manager, BSA Motors said.
“The e-scooters segment is presently worth Rs 450 crore market in India and is expected to double in a year’s time. Our foray into the e-scooters category will expand our portfolio in the two wheeler market,” he said.
Last year, 150,000 electric scooters were sold in the country and the present year is expected to see a growth of 40 per cent. Ultra Motors of UK, Hero Motors, TVS Motors, Yo bikes of Ahmedabad and Eko Vehicles of Bangalore are already selling electric scooters in the country. BSA Motors plans to sell 60,000 units in the first year ending October next year.
The Ambattur plant will have facility for painting, assembly and testing of e-scooters. Key parts like motor, controller, battery, lamps, wheel discs, tyres and tubes have been sourced from different vendors both in India, Korea and Taiwan. The low speed scooters come with a top speed of 25 kmph and high speed models up to 45 kmph and are priced at Rs 27,000-36,000.
“We are presently developing a 100 per cent water resistant motor and planning to launch it in our next model over the next 8 months. The new product will be technologically much more superior and runs faster than the existing products,” Srinivasan told reporters, here.
BSA Motors would be setting up around 70 dealers in the four southern states by March 2009, of which 22 will be in Karnataka.
It is also in the process of setting up rapid recharge points in different parts of the key cities in an attempt to promote the sales of e-scooters, he said adding that the company has tied up with Shriram Finance and DBS Chola for loan arrangements for the scooter.
