Terra Motors to adopt “Make in India” for its electric vehicles: To invest in this north-east state

The pandemic showed Terra Motors that it is hard to source components from outside and hence the renewed vigour to get in-house materials.

By:February 24, 2021 2:11 PM

Terra Motors is quite a famous Japanese electric vehicle maker. The brand not only has electric two-wheelers but also commercial three-wheelers. Terra Motors though has been operating quietly in the Indian electric commercial space. There were talks about the manufacturer planning to bring in its electric bikes but those seem to have been put on the backburner for now. The Japanese manufacturer is celebrating its 11th year in the Indian auto industry. In 2020, the company has grown by 13 per cent. Akihiro Ueda CEO of HQ and CEO of Terra Motors said “We have recorded our business growth to be around +13%, 25% gross profit in comparison with FY2019. In other words, we can say we have successfully emerged with a silver lining in a period most companies considered to be dark”. He also mentioned that Terra Motors is committed to achieving a Rs 500-crore turnover from the three-wheeler segment by FY23.

Terra has high ambitions from the Indian market. One of them is the aim to increase sales by 200 per cent this year. Dealer network expansion and easily available loan facility is something the Japanese maker will focus on for this development. The idea behind “Make in India” is to not only attract the lower duties but also to source materials from within the country. The pandemic showed Terra Motors that it is hard to source components from outside and hence the renewed vigour to get in-house materials. At present, more than 50 per cent of the materials come from outside India. Talks are on with local vendors and Terra aims to have 100 per cent localisation soon.

Assam is one of the states that Terra is interested in investing in. According to a statement released by the firm,

Terra Motors’ work in eastern parts of India and North-East is pursuant to ongoing India’s Act East Policy. They are building e-rickshaws in Assam and creating jobs and emphasising their localisation efforts. Japanese companies are familiar with Assam, and the relationship is further strengthened by JICA (Japan International Cooperation Agency) which has lined up aided projects worth Rs 9Cr to 10Cr in the region.

 

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