Electric Vehicles (EVs) manufacturer, Lohia Auto's CEO Ayush Lohia in an interaction with Utkarsh Agarwal, Editorial Lead of BW Auto World, told that he is targeting sale of over 10,000 EV rickshaws in FY 2024-25, catering to both rural and urban markets while expanding its presence nationwide. The company is introducing new models and ramping up production at its Kashipur facility to meet growing demand. Backed by a Rs. 200 million investment plan for the next five years, Lohia Auto is focusing on R&D, infrastructure expansion, and innovative product development. Its commitment to localised production and alignment with the government’s EV policies further solidify its leadership in the burgeoning electric three-wheeler segment.
Lohia Auto has a presence in both rural and urban markets. How do the needs of these two markets shape your product development and business strategies?
We have been in the business since 2008, and we develop & manufacture high utility and efficient electric vehicles for our consumers which provides better comfort and safety at minimal cost. We have seen that rural and urban markets have distinct needs and preferences. For rural customers, affordability, durability, fuel efficiency, and simple maintenance are key, driving the design of cost-effective, rugged, and reliable vehicles. In contrast, urban customers prioritise style, performance, comfort, safety features, and environmental sustainability.
To address these differing demands, we offer tailored products, incorporating modern designs, advanced safety features, and eco-friendly technologies for urban riders, while ensuring accessibility, robustness, and ease of maintenance for rural customers, ultimately delivering value and satisfaction across both markets.
What is your current sales and with a target to expand EV rickshaw sales by over 10,000 units in FY 2024-25, what strategies are you implementing to meet this ambitious goal? Are there partnerships or marketing initiatives in place to support this growth?
The electric three-wheeler market in India is experiencing rapid growth, driven by increasing demand for sustainable transportation solutions. With over 79,000 units retailed in June 2024, the E3W segment registers strong 27 per cent MoM and 17 per cent YoY growth. Besides, E3W penetration is expected to rise to 14–16 per cent by FY'25, according to an ICRA report. To capitalise this growing market, we have recently launched new products in the L3 and L5 category and it will meet the diverse needs of India's evolving electric mobility market, aligning with the government's vision of making India an electric vehicle nation by 2030.
Lohia Auto has investment plans in the pipeline. Can you elaborate on these investments and the areas they’ll focus on, such as R&D, infrastructure, or new product development?
We have an ambitious investment plan of Rs. 200 million for the next five years, focusing on research and development, infrastructure expansion, and market penetration. These investments will enable us to innovate continuously, enhance our product offerings, and maintain our leadership position in the E3W segment.
Given recent global supply chain challenges, how has Lohia Auto adapted its sourcing and manufacturing practices? Are there plans to localise production further to reduce reliance on imports?
We are acutely aware of the challenges and opportunities presented by recent global supply chain disruptions. To strengthen our resilience, we have proactively adapted our sourcing and manufacturing practices to ensure continuity and maintain the highest quality standards.
A key part of our strategy involves increasing our focus on localising production to reduce dependency on imports. We are committed to supporting the 'Make in India' initiative, and as part of this commitment, we are actively working with domestic suppliers and investing in local manufacturing capabilities. By fostering local partnerships and bolstering our supplier network, we aim to create a more sustainable and robust supply chain.
In parallel, we are investing in technology and skill development to enhance efficiency across our operations. These steps not only mitigate the risks of global supply chain disruptions but also enable us to deliver value to our customers with quicker response times and increased product reliability. Lohia Auto remains dedicated to strengthening India’s EV ecosystem and contributing to the country's goal of becoming a global manufacturing hub."
How significant is government support in your growth plans? What policy changes or incentives do you think are necessary to further accelerate EV adoption in India?
Government policies and incentives significantly impact the market for electric commercial vehicles by reducing the upfront costs and fostering adoption. Policies such as subsidies, tax breaks, and grants lower the initial purchase price, making electric vehicles (EVs) more competitive with traditional internal combustion engine vehicles. Incentives like reduced registration fees, toll exemptions, and dedicated parking spaces further enhance the appeal. Additionally, governments may set stricter emission regulations and offer support for charging infrastructure development, creating a more favorable environment for EVs. These measures not only drive demand but also encourage manufacturers to innovate and expand their EV offerings, contributing to a more sustainable transportation ecosystem.
You plan to add over 150 dealers across India. How are you ensuring consistent service quality and customer support across such a large network? Where do you see Lohia Auto in the next five years?
To support the launch of our new models and strengthen its market presence, we plan to significantly expand our dealer and sales network to more than 100 dealers across India. This expansion will ensure widespread availability of our products across India, providing customers with easy access to innovative and affordable electric mobility solutions.
In addition, our manufacturing facility in Kashipur has undergone a production ramp-up to meet the anticipated demand for our new range of E3Ws. Our state-of-the-art facility is equipped with the latest technology and infrastructure to produce high-quality electric vehicles at scale. We aim to achieve significant market share and drive substantial revenue growth, reinforcing our position as a leader in the electric vehicle industry.
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