The increasing demand in India for electric two-wheelers and three-wheelers has prompted Ultra Motor India to chalk out plans for setting up an assembly plant somewhere in the north by 2010. The company, a subsidiary of the UK?s Ultra Motor, will set up the facility as part of a solo drive into the fast-growing segment. This move is significant in view of the company recently scrapping a joint venture with Hero Group.
?We plan to launch 60,000 units of low- and high-speed electric two-wheelers in 2008-09, a three-fold growth over 2007-08, and if the numbers outperform our expectations, we will surely look for an assembly unit in the northern part of the country,? says Deba Ghoshal, director (marketing), Ultra Motor India, adding that the planned factory will not adversely affect the company?s plant in southern India.
?If the demand continues to grow, the company has long-term plans to look beyond contract manufacturing, and a base in northern India would be economically viable to meet the demands of the region,? says Ghoshal without divulging further details.
The company, which entered India in October 2006 under a technical and joint marketing agreement with Hero Group for low-speed electric two-wheelers, is working on an electric three-wheeler at its base in Taiwan. ?We are currently working on a electric three-wheeler for passengers priced at around Rs 1.25 lakh and a semi-hybrid cargo three-wheeler priced at Rs 1.4 lakh. We expect to launch these in 2010,? says Ghoshal.
Ultra Motor and its joint venture partner Hero Group parted ways recently after both companies decided to sell vehicles using their own brand names. Following this, Ultra Motor plans to continue sourcing motors and battery management systems from its Taiwan plant, but will assemble the low-speed vehicles with support from Hindustan Battery Ltd (HBL), its contract manufacturer in Hyderabad.
The plant, which has an initial capacity of 60,000 units and which could be scaled up to 1,20,000 units, is currently producing high-end electric vehicles that are sold under the Ultra Motor brand.
The company has set aside 70% of a Rs 150-crore investment planned over the next three years for marketing and to double its dealership network to 300 in 2008-09.