KSL Cleantech joins hands with China's Huaihai to enter EV segment
NEW DELHI: Kolkata-based KSL Cleantech on Wednesday inked a joint venture pact with China's Huaihai Holding Group to enter the electric vehicle segment with plans to launch over ten models in the country over the next three years.
The partners plan to invest around Rs 200 crore in the joint venture (JV) firm Huaihai-KSL over the next three years to develop new products, establish manufacturing facilities and set up a sales network.
The JV would focus on electric two and three-wheelers for both commercial and passenger segments initially and later may also consider developing four-wheeler options for the Indian market.
"The JV will invest Rs 200 crore over the next three years to set up manufacturing, assembly units in the country along with sales network, distribution network, vendor development and other activities," KSL Group Managing Director Dhiraj Bhagchandka told reporters here.
The JV aims to launch up to ten electric two and three-wheeler models over the next 12-36 months, he added.
The company is currently in the process of customising the products to suit Indian conditions. The first model is expected to roll out in the market in the next 3-6 months.
"The JV firm aims to sell around 1 lakh units over the next three years. We aim to work with fleet operators and are currently in talks with various such firms," Bhagchandka said.
The group currently has a plant at Kolkata with an installed production capacity of 10,000 units per month. The JV plans to ramp up the production in phases at the facility.
"We are also looking to set up a manufacturing plant in North India besides opening company-owned showrooms in the country," Bhagchandka said.
Huaihai Holding Group Director Cathrine Xing said the company now aims to leverage its decade's old expertise in the electric vehicle field in the Indian market.
"Huaihai has already ventured in the EV four-wheeler space in China and we will also explore such vehicles for the Indian market in future," she added. The Chinese firm has an operation in 76 countries and sells around 15 lakh units annually.