The company anticipates that the increased sales volumes will result in economies of scale, leading to reduced overall costs.
Ayush Lohia, the CEO, expressed hope for the extension of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) II subsidy scheme by the Indian government beyond March 2024 and emphasized the importance of maintaining import duties on vehicle and component imports.
Lohia Auto plans to launch high-speed, high-powered electric two-wheelers next year and is piloting a new passenger-carrying three-wheeler. The company aims for mass market penetration starting from next year, competing with other high-speed electric vehicle makers in the two-wheeler segment.
Lohia Auto’s manufacturing plant in Uttarakhand, India, has a capacity of one lakh units per annum, and the company plans to expand its dealership network to about 200 across the country in the next two years. Lohia emphasized the need for the government to extend FAME II subsidies for two-wheelers to facilitate the transition of the entire two-wheeler market to EVs by 2030.
He also predicted that the three-wheeler segment would fully transition to EVs by 2027. Lohia expressed concerns about the impact of the subsidy reduction on EV two-wheeler sales and called for an extension of the subsidy scheme into 2024, emphasizing its role in increasing sales volumes, promoting higher localization, and making India self-sufficient in the EV ecosystem.