Okinawa Autotech Invests Rs 200 Crore to Set up New Plant; Aims at 1 Million Production Capacity
Okinawa's new plant at Alwar in Rajasthan is being set up with 5 lakh units per annum capacity and will be ready by the end of this fiscal to add to the existing volume of 90,000 units a year.
Okinawa i-Praise. (Image: Okinawa)
Electric scooter maker Okinawa Autotech is investing Rs 200 crore to set up a new manufacturing plant with an annual capacity of one million units, preparing to meet increased demand following the implementation of FAME II scheme, a top company official said. The new plant at Alwar in Rajasthan is being set up with 5 lakh units per annum capacity and will be ready by the end of this fiscal to add to the existing volume of 90,000 units a year.
"As on today, our capacity in a single shift is 90,000 units per year. If the market demand grows we can increase it to 1.8 lakh units in double shift. We are also working on a new facility. Our new plant will be operational by the end of this fiscal year," Okinawa Autotech Pvt Ltd Founder and Managing Director Jeetender Sharma told PTI. The new unit will have a total installed capacity of up to one million vehicles annually and that would be ramped up in a phased manner. "In the first phase we are looking at around 5 lakh units annually that will be ready by the end of this fiscal. The second phase will be in the next financial year," Sharma said.
When asked about investment in the plant, he said, "It will be Rs 200 crore". Sharma said the company decided to set up the new plant in order to be "future ready towards the direction of the market", especially after the expected increase in demand for electric scooters after the implementation of FAME II. "Demand has increased after FAME II, people have gained more confidence in electric two-wheelers. Even the price of the electric scooter will also go down. For example, we got a subsidy of Rs 26,000 under FAME II as compared to Rs 22,000 under FAME I and that Rs 4,000 extra more benefit we are passing it to the customer. That will give a boost," the MD said.
Under the government's ambitious FAME II scheme to popularise electric and hybrid vehicles, up to 10 lakh electric two-wheelers powered by new advanced technology battery of 2KWH are pegged to get a subsidy of up to Rs 20,000. The maximum ex-factory price of an electric two-wheeler to avail of the subsidy is up to Rs 1.5 lakh. Bullish on demand to increase, Sharma said, "In another three to four years we expect to utilise the full capacity of the two plants".
Commenting on the company's sales expectations, he said, "In 2018-19 we sold around 45,000 vehicles. This financial year we are looking at selling one lakh vehicle".
The top official further said Okinawa is also ramping up its sales network across India to have a total of 500 dealers, up from 300 as on March 31.
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