New Delhi: Lohia Auto is planning revenue expansion by targeting sales of 25,000 units for electric two-wheelers and 10,000 units for electric three-wheelers, CEO Ayush Lohia said in an exclusive interview with ETEnergyworld.
As India celebrates the milestone of 1 million EVs, the company primarily known for 2W and 3W EVs, is projecting a surge in demand, especially as festival season looms.
Breaking down the projections, he highlighted the strength of the three-wheeler EV market, where the firm has captured over 50% of the L5 category. It is optimistic that by 2030, EVs will dominate the Indian roads. Despite currently holding a 5% market share in the two-wheeler sector, Lohia Auto foresees this figure expanding to 30-50% by 2030.
Lohia acknowledged the recent subsidy reductions and the challenges posed by India’s lack of a battery cell manufacturing facility. “Although growth has slowed in the past six months, the momentum will likely continue, especially once the FAME III policy is introduced. Based on initial discussions, we anticipate the government plans to allocate around INR 50,000 to INR 60,000 crore,” he said.
Facing a potential demand-supply challenge, with an annual target of 300,000 vehicle sales against a manufacturing capacity of 100,000, Lohia Auto is exploring expansion options. “Once we approach an annual figure of 50-60,000 vehicles, expansion is on the cards. The government’s incentives for new investments make setting up new plants an appealing strategy,” stated a company representative.
The company is actively exploring collaborations for diversification, including the recent venture into battery swapping.
Lohia also shared plans to expand its dealer network, targeting distinct outlets for its two-wheelers and three-wheelers, prioritizing service quality and customer engagement. As for manufacturing, while no definitive plans are set, Lohia said the firm is eyeing potential factory locations in the south or west of India.
Commenting on the FAME II subsidies investigation by the government, the company clarified that it is not involved but has been transparent with the Department of Heavy Industries to clear any misunderstandings.
