Hyderabad, Electrotherm (India) Ltd, the Gujarat-based manufacturer of battery-powered two-wheelers, now plans to launch higher capacity bikes that compete with 125 cc motorcycles.
The company is in the process of setting up a battery plant in China to meet its requirements for two-wheelers sold under YObyke brand.
The Senior Vice-President of Electrotherm, Mr B.K. Vaishya, said, ?the response to the launch of battery-powered bikes has been encouraging with the company thus far selling about 46,000 of them, priced about Rs 40,000. We now expect to scale this number up to 1,00,000 by next fiscal.?
The market for electric bikes is expected to grow to about 5,00,000 within three years against 1.6 million in China. If the Government pitches in with additional concessions, including lower VAT, this segment is expected to grow much faster, he explained.
Addressing a press conference here today, Mr Vaishya, said ?the battery-powered bikes have made quick inroads into the market after we managed to educate the buyers about the advantages and reliability of these bikes, which have been developed with indigenous technology by the company R&D teams. They now sport about 85 per cent of the products developed indigenously.?
?As users want more power, we now are in the process of finalising plans to launch higher capacity bikes that match up with 125 cc bikes and could carry two people with ease with the battery lasting about 25,000 km of usage,? he said.
To meet the company requirement for batteries, which now costs about Rs 6,000, Mr Vaishya said, ?Electrotherm expects to manufacture them in a new plant being set up in China. We would be able to offer them for about Rs 4,000. Batteries available in India do not meet requirements.?
Meanwhile, the company received a shot in the arm with ICICI Venture pumping in Rs 82 crore by picking up company equity. These funds would be infused in the next phase of growth of the company, he said.
Last fiscal, Electrotherm along with group companies registered revenues of Rs 700 crore.
The company?s R&D teams are working on developing battery operated three-wheelers and other range to meet the requirements of elderly people and people with physical disabilities.
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