Electric scooter maker Okinawa Autotech is investing Rs 200 crore to set up a new manufacturing plant with an annual capacity of one million units, preparing to meet increased demand following implementation of FAME II scheme, a top company official said.
The new plant at Alwar in Rajasthan is being set up in a staggered manner with 5 lakh units per annum capacity to be ready by the end of this fiscal to add to the existing volume of 90,000 units a year.
“As on today our capacity in a single shift is 90,000 units per year. If the market demand grows we can increase it to 1.8 lakh units in double shift. We are also working on a new facility. Our new plant will be operational by the end of this fiscal year,” Okinawa Autotech Pvt Ltd Founder and Managing Director Jeetender Sharma told PTI.
The new unit will have a total installed capacity of up to one million vehicles annually and that would be ramped up in a phased manner.
“In the first phase we are looking at around 5 lakh units annually that will be ready by the end of this fiscal. The second phase will be in the next financial year,” Sharma said.
When asked about investment in the plant, he said, “It will be Rs 200 crore”.
Sharma said the company decided to set up the new plant in order to be “future ready towards the direction of the market”, specially after the expected increase in demand for electric scooters after the implementation of FAME II.
“Demand has increased after FAME II, people have gained more confidence in electric two-wheelers. Even the price of the electric scooter will also go down. For example, we got a subsidy of Rs 26,000 under FAME II as compared to Rs 22,000 under FAME I and that Rs 4,000 extra more benefit we are passing it to the customer. That will give a boost,” the MD said.