The Hindu Business Line : BSA Motors planning bikes that run on alternative fuels

Though the company decided to venture into other regions after a 6 to 9-month presence in the southern market, it would start selling in Delhi and Chandigarh from January.

T. Murrali

Chennai, Oct. 26 BSA Motors, part of Tube Investments of India Ltd of the Murugappa Group, is looking at expanding product portfolios in its two-wheeler business. In addition to the recent launch of five electric bikes, the company is mulling options to make bikes that run on “few combination of energy sources”.

The General Manager of BSA Motors, Mr K.B. Srinivasan, told Business Line that since the automotive industry is moving towards alternative fuel options, TI set up a separate division, BSA Motors, for electric bikes. We are studying possibilities of using a combination of alternative fuels to expand product portfolio, he said, adding that it is in talks with a few companies to collaborate on two-wheeler technologies.

Sale target

BSA Motors has a capacity to make about 100 units a day and hopes to utilise its full capacity in a couple of months. The company has set a target of selling 10,000 units before March 2009 and by December 2009 it would sell 50,000 units, he said.

The company recently launched five models of electric bikes with motors in the range of 250 to 800 watts. The market for electric bikes is estimated at Rs 450 crore and is expected to double next year primarily due to the increase in oil prices.

In order to capitalise on the emerging opportunity, the company is gearing up its retail initiatives. BSA Motors has five retail outlets now and has signed up for 43 dealerships, which are in different stages of implementation.

Though the company decided to venture into other regions after a six to nine-month presence in the southern market, it would start selling in Delhi and Chandigarh from January, he said.

Export plans

The company would also look at exporting the electric bikes as it received enquiries from SAARC and West Asian countries.

However, “we have to work on Europe and South America”, and the orders would mature next year, he said.

At present, the vehicles manufactured by the company have a 65 per cent import content and the company has set a target to reduce it to less than 20 per cent in two years, he added.

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