LML's India return scheduled for 2023; local manufacturing under consideration
The erstwhile legendary scooter company LML or Lohia Machines Ltd. is set to return to India as an electric two-wheeler firm called LML Electric. The automaker's new owner SG Corporate Mobility announced that the company will launch its first product in India in the second half of 2023. LML Electric also has plans to set up its own manufacturing plant in the country.
Why does this story matter?
Toward the end of the last decade, LML had a tough time, culminating in the National Company Law Tribunal-ordered liquidation. The automaker is now ready to spread its wings again under new promoters after the Singhania family sold it last year. Is LML going to take us on a trip down memory lane or keep it fresh? We will have to wait and watch.
First product in India will be a 'hyper bike'
LML Electric will launch three products in different categories. The first will be an electric bike (bicycle) in the first half of 2023 for the US and European markets. The automaker will make its India entry in the second half of 2023 with a 'hyper bike,' a crossover between an electric scooter and a motorcycle. The third product will be an electric scooter.
The former Harley Davidson plant in Bawal will be used
LML has entered into a partnership with Saera Electric Auto Pvt. Ltd. The latter had acquired US automaker Harley-Davidson's manufacturing plant in Bawal, Haryana earlier this year. LML will use this manufacturing facility to roll out its products. It has a capacity of 2.25 lakh units/year. The company is also planning to set up its own manufacturing plant in the next two years.
Automaker will produce 1 million units/year after 2025
LML Electric wants to make around one million vehicles per year after 2025. In the next three to five years, the company also has plans to have its footprint in every district in India with a partner.
Company plans to raise Rs. 500 crore for expansion
SG Corporate Mobility acquired the LML brand and intellectual property in August last year. Yogesh Bhatia, the CEO of LML and the promoter of SG, said that Rs. 350 crore has been earmarked for investment in the first phase. The company is also looking to raise between Rs. 400 crore to Rs. 500 crore for its expansion plans, including setting up its manufacturing plant.
