LML Electric is looking to invest ₹350-crore in the business, including in setting up a new manufacturing plant, news agency PTI reported, quoting a company official.
“We are looking at our first investment of ₹350 crore. This investment is planned for product expansion, setting up a new manufacturing facility and collaborations, among others,” said LML CEO Yogesh Bhatia.
He said that the company has received “many” investment proposals from some “big” investors but it will take a call only after unveiling its products in September this year.
Emphasising that LML Electric has so far been funded through the parent company SG Corporate Mobility, Bhatia said that the management has discussed the proposals but sought time from the prospective investors as “we want them to first evaluate all aspects of our products once they are unveiled in September.”
Bhatia also said that the company has received proposals for land from 2-3 states for a new manufacturing facility, which are being evaluated.
“We are aiming for a truly world-class electric vehicle manufacturing facility with a capacity to manufacture 1-million vehicles per year in the long term. The planned facility will have the flexibility to produce as per the market demand,” he said.
It usually takes 18-24 months to set up a plant, he said without giving a specific timeline for the commissioning of the proposed production facility.
Bhatia said that all the three products will cater to both domestic and international markets with e-bikes mainly targeted towards the Us and European markets, which have good racing tracks besides almost a 100% penetration.
Bhatia said that LML Electric is also looking at charging infra, which is one of the key factors in the adoption of electric vehicles in the country, without elaborating further on the issue.
He said the company also plans to set up LML studio-cum franchise in as many as 835 districts of the country which will serve as the LBL hub for meeting customers’ all vehicle-related requirements.
The Kanpur-based Lohia Motors Ltd (LML) used to make the iconic Vespa Scooter in collaboration with Italy’s Piaggio and C Spa.
The company announced its plan to re-enter the market with electric vehicles in September last year.
In April this year, LML said the company is looking to unveil three EV products— a hyperbike, an e-bike and an electric scooter — by September and their subsequent launch between February and August next year.
LML Electric has entered into a strategic alliance with Saera Electric Auto, the former manufacturing partner of Harley-Davidson in India, which has a capacity to produce 18,000 vehicles per month, to manufacture its electric two-wheelers.
With inputs from agencies.