Gurgaon-based electric two-wheeler manufacturer Okinawa Autotech is investing Rs. 200 crore to set up a second manufacturing plant in Rajasthan.
The company has acquired land near Bhiwadi for the new plant, which will have a total manufacturing capacity of one million units. The first phase of the plant will be commissioned towards the beginning of 2020-21. The plant will be funded through a mix of debt and internal accruals, according to the company.
Okinawa Scooters reported revenue of Rs. 200 crore for 2018-19.
“We expect the market for electric two-wheelers and three-wheelers to grow to 7-8 million units by 2022. We want to gain leadership position in the electric two-wheeler segment and will be ready with the required products, technology and capacity for the same,” said Jeetender Sharma, founder, Okinawa Autotech.
The company recently received certification from the Automotive Research Association of India (ARAI) for two products – Okinawa I-Praise and Okinawa Ridge+ - for being compliant to FAME-II (Faster Adoption and Manufacture of Hybrid and Electric Vehicles) standards.
Sharma said the level of localisation in both products stands at about 80%. He said the company had been working on increasing localisation in its products for the past two and a half years and could, therefore, meet the requirements as outlined under FAME II announced in March 2019.
“Our customers will be able to avail of subsidies of Rs. 17,000-26,000 on the I-Praise and Ridge+ under FAME-II. We have been working on localising our products for over two years now and sourcing components from around 50 vendors in the National Capital region (NCR),” said Sharma.
According to the company’s website, the I-Praise is priced at Rs. 1.14-1.16 lakh and the Ridge+ at Rs 79,290 (ex-showroom price). Though the prices are higher than those for petrol scooters, Sharma said the running costs are way cheaper. According to him the running cost of the electric two-wheelers stands at 10-20 paise per km compared to Rs. 1.75-1.80 per km for petrol two-wheelers.
Okinawa Scooters has plans to launch two more lithium-ion battery powered electric two-wheelers – a motorcycle and a scooter - this year to gain leadership position in the local electric two-wheeler market. To extend reach, the company plans to add 146 dealers to its existing network of 304 dealerships in the current financial year.
Sharma said the company sold 45,000 electric two-wheelers in 2018-19 and had a market share of 40-45% in the segment. “This year the target is to sell 100,000 units,” he said.
At present, 30-40% of the company’s sales come from lead-acid battery powered models. The company intends to phase out lead-acid driven two-wheelers and sell only lithium-ion battery powered products from the next financial year.
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