LML Electric to venture into e-scooter space, to invest Rs.1000 crore
Kanpur-based LML Electric has announced that it has earmarked an investment of Rs 1000 crore to develop products and set up manufacturing units in the country in the next three-five years as a part of its plan to re-enter the local two-wheeler market by the end of the upcoming calendar year.
Yogesh Bhatia, Managing Director & Chief Executive Officer, LML Electric said "We have commenced market surveys to gauge customer requirements for our first product which will be launched by the end of 2022. We have received proposals for collaboration from technology partners in Germany, Japan, and South Korea. A decision will be taken shortly." Talks are simultaneously on with investors for the project and will be concluded soon, informed Bhatia
"We will start with scooters and later enter the motorcycle segment. We aim to target upper-middle-class customers and urban segments of society", he said. Bajaj Chetak and Ola Electric come tagged between Rs 1-1.5 lakh currently" he further added.
LML Electric is at present in talks with the state governments of Haryana and Madhya for setting up a manufacturing unit with a total installed capacity of 100,000 units per annum. Depending on how discussions progress, the company may set up production and parts manufacturing units in either one or both locations.
Batteries for the electric products being planned by LML will be sourced locally. "There are battery makers who are going to start operations in the next 12-18 months. Everything will be sourced locally. We expect the ecosystem to evolve by the time we launch our first product", said Bhatia.
As regards distribution, Bhatia stated the company plans to appoint a dealer principal in every district in the next three years.
"LML has a very strong brand recall. We are working hard to ensure that our product meets customer expectations in terms of design, specifications, and quality. We will have at least one dealer in 750 locations within a period of three years, with more outlets in larger cities. We are targeting sales of 100,000 units within a year of launch" he further added.