In its bid to cash in on the government’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) India scheme, Lohia Auto Industries is preparing a roadmap for expanding its electric vehicle portfolio, with a slew of three-wheelers as well as two-wheelers already on the cards. Tapping into the next wave of India’s public transport, Lohia Auto has launched ‘Humrahi’, a motor-powered electric rickshaw priced at Rs. 1 – 1.2 lakh. Available in passenger and cargo versions, it is powered by a 80AH/100AH low maintenance, lead-acid battery with an electric starting system. The company expects roughly the passenger variant to account for the lion’s share at 90 per cent with the remaining numbers coming from the cargo variant.
It may be recalled that the Noida-based firm made its EV debut in 2008 with Oma Star and Fame e-scooters and have sold close to 20,000 units of both the units till date.
In an exclusive interaction with MOTORINDIA, Mr. Ayush Lohia, CEO, Lohia Auto Industries, said: “The idea behind starting this venture was to provide a range of vehicles that are cost effective, eco-friendly and energy-efficient. The electric vehicle segment has a huge potential (in India) and, with the Central Government rolling out the FAME India scheme, the sector is poised for a phenomenal growth. This new initiative by the Government headed by Prime Minister Narendra Modi is very encouraging and gives an initial thrust (to the industry), so that people can switch over to electric vehicles. It will reduce the gap between gasoline-run vehicles and battery-run bikes and three-wheelers. We are expanding our 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. We are the first and only Indian company to pioneer into manufacturing of zero-emission vehicles in the country, and, equipped with special EV-grade batteries, these vehicles are not only cost-effective but eco-friendly too. The electric vehicle should contribute roughly Rs. 100 crores to our automotive arm by 2020. We are going to achieve all these targets on the back of our current portfolio and new launches beginning this fiscal.”
The company has also approached the Central and State Governments for tax concessions to promote production of green vehicles in the country.
It may be recalled that the 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.
Talking about the potentialities of the three-wheeler vehicle segment, he observed: “When we unveiled the product (Humrahi) in 2014, there were no proper guidelines under the Motor Vehicle Act for such a category of vehicles (at that point of time). But now the Government has amended the Act that enables e-rickshaws to be bought under the Motor Vehicle Act and has also passed a notification in Parliament in January. There are certain safety standards which were earlier not present and now have to be maintained by all Electric Vehicle manufacturers. We were already conforming to all the safety standards from the day it was showcased (at the Auto Show’14). Built in line with the Automotive Research Association of India (ARAI) design specifications, these rickshaws will deliver comfortable ride even on the toughest terrains and are likely to have a higher shelf life than Chinese counterparts. We aim to sell 20,000 electric three -wheelers in this fiscal.”
Referring to its just-launched Humrahi, Mr. Lohia commented: “Apart from its aesthetic appeal, which includes a beautiful interior, choice of attractive colors, custom fittings and exceptional finish, these e-rickshaws can accommodate four passengers and are low-maintenance and easy to operate. While these e-rickshaws will offer an affordable mode of transport to passengers, these will also provide a great investment opportunity to drivers. We started retailing it for the last two months and have despatched 200 units as a pilot project. The response has been pretty encouraging. We intend to sell 2,000 units per month and eventually 50,000 units per annum. Our products are completely indigenised. We have designed the products completely in-house. You won’t see any similarity between Chinese-made vehicles and our vehicles.”
He added: “Until now, there were small time traders who were selling through illegal channels. But we shied away from any such practices because we believe in complying with all ethical standards. Now we are going to take up our expansion plans as this vehicle is now recognised by the Government.”
It may be recalled that Lohia Auto is already selling the ‘Humsafar’ range of gasoline/diesel three-wheelers since 2012. A single-cylinder, four-stroke, direct injection, diesel engine of 436cc, rated for a peak power of 7.5HP@3600+50 RPM and a torque of 18NM@2400+200 RPM meeting BS III emission standards, powers the three variants of the Humsafar, i.e., the people carrier, the open loading bay LDi and the covered loading HDi. While all variants are available in the colours of Red, Blue and Green, white is an option only on the people carrier.
Justifying its presence in the gasoline/diesel three-wheeler segment, Mr. Lohia said: “Lohia Auto Industries was established in 2008 with an objective to provide clean, efficient, reliable and affordable inner-city & rural transportation. Our priorities are both diesel and zero emission three-wheelers. Our diesel-run vehicle (Humsafar) is used for inter-city transportation and complements with our battery-run vehicle meant for intra-city or last mile transportation. We will consider full-fledged electric rickshaws also. We will also go pan-India for widening our distribution base. Currently, our diesel-run vehicle is sold in Bihar, Jharkhand, Chhattisgarh, Uttar Pradesh, etc. We will target other major cities barring Delhi and NCR where only CNG vehicles are allowed to ply. In order to get economies of scale (for our dealers), we will be selling all the products under one roof. At present, we are running a chain of 70 dealers which will be ramped up to 150 by the end of this year.”
Asked whether Lohia Auto is interested in four-wheeled CV, he affirmed: “Yes, as a logical progression we would like to get into that as well. It could be for both passenger and cargo versions. But it will require another year or so for a proper R&D to develop such products. Right now, we are working on electric three-wheelers.”
It is to be mentioned here that Lohia Auto has invested Rs. 50 crores for establishing a manufacturing unit based out of Kashipur, Uttarakhand, which is dedicated for building all kinds of vehicles. It already has a land bank of 50 acres, in addition to 3,00,000 sq.ft. of built-up area. The greenfield facility is running two separate assembly lines for electric two-wheelers and three-wheelers (both diesel and electric). The plant is already having an installed capacity of one lakh pieces per annum for electric two-wheelers and 42,000 per annum for three-wheelers.
“We will be making an investment of Rs. 30-40 crore in the next two years to enhance manufacturing capacity of diesel and electric three-wheelers,” he added.
Bullish on the EV segment, Lohia Auto is targeting a turnover of Rs. 300 crores. The group, which has a turnover of around Rs. 600 crores, has already lined up an investment of around Rs. 120 crores, including Rs. 50 crores for three-wheelers, to spruce up its manufacturing facility in Uttarakhand. The company is also strengthening its sales network by opening zonal offices all over the country. It plans to expand the sales network from 70 currently to 200 outlets by the end of this fiscal.
“We want the auto division turnover to be around Rs. 300 crores by 2018. We are going to achieve this target on the back of our current portfolio and new launches, which start this fiscal. We plan 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 stable of the 50:50 JV with US-based UM Motorcycles. The Lohia conglomerate, which is present in automobile, handicraft export, retail warehousing and real estate, among other sectors, will be worth about Rs. 1,000 crores by 2020,” concluded Mr. Lohia.