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. The company is taking this step 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 of 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.
Under the government’s ambitious FAME II scheme to popularise electric and hybrid vehicles, up to 10 lakh electric two-wheelers powered by new advanced technology battery of 2KWH are pegged to get subsidy of up to Rs 20,000.
The maximum ex-factory price of an electric two-wheeler to avail of the subsidy is up to Rs 1.5 lakh.
Bullish on demand, Sharma said, “In another three to four years we expect to utilise the full capacity of the two plants“.
Commenting on the company’s sales expectations, he said, “In 2018-19 we sold around 45,000 vehicles. This financial year we are looking at selling one lakh vehicle“.