The rising pollution levels and sky-rocketing fuel prices are driving companies to develop more environment-friendly as well as economical vehicles. The latest company to have realized the need is Chennai-based Tube Investments of India Ltd, a part of the Rs.95.82 billion ($2.3 billion) Murugappa group. The company recently inaugurated its new electric scooter plant in Chennai and announced its plans of launching electric scooters soon.
Tube Investments is already involved in the production of cycles, automotive and industrial chains, car door frames and steel tubes. It has made an investment of somewhere around Rs.200 million in the newly-inaugurated plant. According to Arun Alagappan - Senior Vice President of TI Cycles (the manufacturing division of Tube Investments), the company will be launching the product (electric scooters) around September 2008.
He further elaborated that the two-wheelers, which will be battery-powered, would be launched under the company's bicycle brand, BSA. The initial capacity of the new Chennai plant is expected to be over 100 scooters a day. At the start, the company will launch three low speed models of the electric scooter, which are expected to have a price of around Rs. 25,000. Later, it will come up with two high-speed models, with a launch price of around Rs. 36,000.
As of now, the batteries and motors are being imported from China and Taiwan. They might be made domestically later, though there is no official word on it yet. Initailly, Tube Investments will be marketing the scooters only in the South Indian markets. Depending on the response garnered by them, it will decide about launching them at national level. For the purpose of distribution, the company will appoint around 70 dealers, in the Tier I and II cities of the southern region.
