Electric vehicle-maker Lohia Auto might have shifted strategic focus to the three-wheeler segment over the past few years, but the company is set to make a comeback in the two-wheeler space with a full portfolio of electric models soon.
“As far as electric two-wheelers are concerned, we will definitely comeback with a full portfolio… But, it will take another 9-12 months,” Ayush Lohia, chief executive officer, Lohia Auto, told TMS. However, the company’s future pipeline will see it first strengthen its electric three-wheeler portfolio over the next six months, with a couple of new models in the offing.
“In the next six months, we have several launches planned. We will come out with a new design in the e-rickshaw segment, followed by two electric autos. We will have a complete portfolio in the three-wheeler EV segment,” he said.
Lohia Auto had initially entered the market as an electric two-wheeler player, but the lack of policy clarity and the lack of demand had seen it shift its focus to tap into the burgeoning three-wheeler segment, though it continues to sell two electric scooters.
The demand for e-rickshaws has risen sharply in tandem with increasing last-mile connectivity needs and data from the Society of Manufacturers of Electric Vehicles shows that sales of electric three-wheelers grew 21 per cent during 2018-19 to reach 630,000 units, against 520,000 sold in 2017-18.
Government’s intent clear
Lohia also said that the long-term prospects for the EV sector look robust, since the Central government’s intent to steadily electrify mobility is clear.
“The FAME-II scheme is fully active, and they have reduced GST on EVs from 12 per cent to 5 per cent. Both of these are welcome measures. There needs to be some clarity in the two-wheeler and three-wheeler segments’ transition to electric, but it is not an easy decision and I am sure they will clarify things soon,” he said.
However, the one thing that could help make things better for the sector is opening up the retail financing tap for electric vehicles. Lohia says the industry has called for classifying EV retail credit under the priority sector to solve this issue.