Ultra Motor plans new plants, new modelsSeptember 25th, 2008 - 7:06 pm ICT by IANS
Chennai Sep 25 (IANS) The Delhi-based battery-powered two-wheeler manufacturer Ultra Motor India Pvt Ltd is planning to expand production capacity, product range as well as its distribution network, according to a top company official.”We are in the process of setting up a new 400 units per day plant in north India,” the company’s managing director Ganesh Mahalingam told reporters here Wednesday.
“We will be introducing three more models - low and high speed - and increase the dealer network to 350 by the end of fiscal 2008-09 from the current 150,” he said.
Launching Marathon, a low speed model (priced at Rs.32,149 ex-showroom) and inaugurating a new dealership here, he said the new plant will cater to the northern market while its Hyderabad plant will meet the demands of southern and western region.
“The company is targeting a turnover of $22 million (Rs.880 million) this year and $58 million (Rs.232 million) by 2010.
According to him, Ultra Motor India will be investing around Rs.1.40 billion over the next three years in marketing and development of new products.
The company is in the process of designing a new model in Germany for the Indian market.
Targetting 45,000 units sale this year, Ultra Motor is pitching to convert prospective buyers of traditional scooters and mopeds to battery powered bikes.
“Around 600,000 two wheelers are sold every month in India. In fiscal 2007-08, 7.2 million vehicles were sold of which scooters accounted for 1.05 million and mopeds 410,000,” the company’s marketing director Deba Ghoshal said.
According to him, the sales of scooters and mopeds are on the rise.
“We hope 9 per cent of scooter/moped buyers will opt for electric bikes,” he said.
The company’s new model Marathon will deliver a range of up to 100km per charge and is targeted at youth (24 plus) riding a petrol scooter or a moped and also bicycle riders who want to upgrade.
According to Mahalingam, the company imports the motors, controllers, batteries and plastic body panels from Taipei and China.
“We have plans of localising the batteries. Currently, tyres, indicator lights and other mechanical parts are sourced locally,” he added.