LML Electric plans to invest Rs 350 crore in the company
Bombay:
LML Electric, which has announced its plans to roll out three products in its second coming next year, plans to invest Rs 350 crore in the company, including in setting up a new factory, a top executive of the company said.
Kanpur-based Lohia Motors Ltd (LML) previously made the iconic Vespa scooter in collaboration with Italian Piaggio and C Spa.
The company announced its plans to re-enter the market with electric vehicles in September last year. In April of this year, it said the company plans to unveil three EV products — a hyperbike, an e-bike and an electric scooter — in September and their subsequent launch between February and August next year.
“We are looking at our first investment of Rs 350 crore. This investment is planned for product expansion, setting up a new production facility and collaborations, among others,” said Yogesh Bhatia, Chief Executive Officer of LML.
He said the company has received “many” investment proposals from some “big” investors, but will not take a call until after the unveiling of its products in September this year.
Emphasizing that LML Electric has so far been funded through parent company SG Corporate Mobility, Bhatia said management has discussed the proposals but has asked for time from the potential investors because “we want them to first evaluate all aspects of our products as soon as they are available.” unveiled in September.”
Mr Bhatia also said that the company has received proposals for land from 2-3 states for a new production facility, which are under evaluation.
LML Electric has entered into a strategic alliance with Saera Electric Auto, Harley-Davidson’s former manufacturing partner in India, which has a capacity of 18,000 vehicles per month for the production of its electric two-wheelers.
“We aim to have a world-class electric vehicle manufacturing facility with the long-term capacity to produce 1 million vehicles per year.
The planned facility will have the flexibility to manufacture according to market demand,” he said.
It usually takes 18-24 months to set up a factory, he said without providing a specific timetable for commissioning the proposed production facility.
Mr Bhatia said all three products will serve both domestic and international markets, with e-bikes primarily targeting the US and European markets, which have good race tracks alongside nearly 100 percent penetration.
Mr Bhatia states that LML Electric is starting from scratch with a 50 year legacy but has no baggage, unlike other electric vehicle manufacturers who have the baggage in the form of an ICE engine platform among other things, Mr Bhatia said it company wants to tackle the pain points of an e-two-wheeler buyer with products that are “totally different, unique and innovative”.
He said the company has conducted a detailed study of the EV products through interaction with consumers and car design houses, among others in Europe, adding: “after which we can say that we are ready to start a new trend and category. in the EV space”.
“Our product will certainly be accepted if we provide a completely different type of solution in the EV space,” claimed Mr Bhatia.
He said LML Electric is also looking at charging infrastructure, which is one of the key factors in the adoption of electric vehicles in the country, without going into further detail.
