Lohia Auto Industries Ltd, a leading electric two- and three-wheeler manufacturer, is strategically planning to introduce high-speed scooters and new passenger-carrying three-wheelers in India. The company aims to expand its dealer network to capitalize on increased sales volumes, ultimately achieving economies of scale and reduced overall costs.
Ayush Lohia, CEO of Lohia Auto, is optimistic about the potential extension of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) II subsidy scheme by the Indian government beyond March 2024. He emphasized that the company will launch high-powered electric two-wheelers next year, anticipating significant market competition with players like Greaves Electric Mobility, Ather, and Ola.
Lohia Auto’s production plant in Kashipur, Uttarakhand, currently produces one lakh units per annum. With about 100 dealers primarily in North and Central India, the company plans to enter South Indian markets, aiming to reach approximately 200 dealers nationwide within two years.
Lohia urged the government to extend the FAME II subsidy scheme for two-wheelers, envisioning a complete transition of the two-wheeler market to electric vehicles by 2030. He predicts that the three-wheeler segment will fully embrace electric vehicles by 2027, followed by two-wheelers. Expressing concern over the impact of reduced EV two-wheeler subsidies in 2023, Lohia looks forward to the government extending the subsidy scheme into 2024, benefiting not only two-wheelers but also three-wheelers.