Last month, yesteryear scooter major LML announced that it is eying a comeback in the Indian automotive market, this time via electric vehicles. The company has further revealed that it has collaborated with contract vehicle maker Saera Electric Auto for the production of its electric vehicles.
There are chances that you might be hearing the name Saera Electric Auto for the first time. It is the same company that used to manufacture Harley Davidson motorcycles in the country before the company exited the Indian market in 2020.
Its facility in Bawal, Haryana which has a capacity of manufacturing 18,000 vehicles a month, will now be used to make India focused electric vehicles for LML Electric.
“We foresee an immediate need for automakers to reduce their dependence on imports and build an infrastructure that is designed and capable to address the rapidly growing demand in India and the world over.” Dr. Yogesh Bhatia, CEO of LML said in a prepared statement.
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From nostalgia to the need of the hour
For most of us, LML is not a new name. The company used to be one of the leading manufacturers of both bikes and scooters in the country. It gave stiff competition to Bajaj and Hero before it quit the market in 2018.
Now looking at the growing demand for electric vehicles, the company wants to pivot to zero-emission vehicles and is looking to transform itself into a leading electric vehicle company.
Under the new branding, the company will make ‘disruptive product for the upper-middle and urban segments of the society.’ This suggests that the company might not be looking at making ultra-affordable vehicles, but it wants to create products competing with the likes of Ather and Ola – however, at a price point that undercuts the competition.
Hinting at its long-term vision, the company has said that it wants to invest Rs. 1000 crore over the next 5 years and aims to transition to a 100 per cent Make in India company in the next three years.
It’s been reported that the company might launch battery-powered bikes as well. If everything goes as per what the company is planning, the first scooter from LML Electric is expected to roll out soon.
Market dynamics have changed
Though the second innings for LML might not be as easy as the first one was. Back then, the competition wasn’t as fierce, and we had a handful of companies competing in the two-wheeler segment.
However, since the technology has simplified over the years and making electric vehicles isn’t as difficult as ICE-powered vehicles, we have a number of startups and even smartphone makers looking to grab a pie of this segment.
Additionally, the success of electric vehicles is also dependent on various external factors like the upfront pricing, battery replacement cost, on-vehicle charging solution as well as the availability of public charging stations.
Though the government is doing its best to increase electric vehicle adoption in the country, LML Electric will a challenging task at its hand this time around and it needs to find the best possible solution in terms of pricing, features and availability.
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