Electric vehicle factory: Electric vehicle manufacturer OSM to set up retrofit factory in Punjab for $25 million
The Faridabad-based company, part of the Anglian Omega Group, currently manufactures electric three-wheelers for freight and passengers and an M1KA small utility vehicle. Moreover, it is in the process of launching an electric two-wheeler as well as higher-end trucks.
“We have partnered with a global player in retrofit technology to transition to converting vehicles with ICE engines to electric powertrain vehicles. We are setting up a retrofit factory in Mohali Punjab on a 5 acre land “, Narang told PTI.
He said the upcoming facility will arrive in the next six months and will initially support small and light commercial vehicles for retrofitting and then gradually add buses and other vehicles as well.
“We are investing $25 million in our renovation company, OSM Retro and our policy will be diesel lao, electric le jao (bring a diesel vehicle and take back an electric vehicle),” Narang said, adding that he was also in talks. . with electric vehicle operators in the Africa region and other countries as well with the aim of getting this business from these markets as well.
Narang added that retrofit vehicles significantly reduce the cost of an EV compared to a new EV and provide a good option for customers who forgo buying an EV despite wanting to because of the cost.
Noting that recent increases in fuel prices, particularly diesel, have “negatively” affected revenues for ICE-powered commercial vehicle operators, he said demand for electric vehicles had increased significantly.
“However, the financing of electric vehicles, especially by nationalized banks, remains a serious problem due to certain apprehensions such as the resale value of the vehicles, its durability, among others. is not happening at the rate it should have happened because demand without buying cannot constitute demand,” Narang said.
He said that central and state governments have policies for the manufacture of electric vehicles and batteries, but not for the financing of these vehicles, which is an important element in accelerating the adoption of these vehicles.
“Tackling the demand-side issues is as important as tackling the supply-side issues. I have urged the government to address these aspects as well. The nationalized banks should also let us know the comfort (guarantee ) they want for electric vehicle financing,” he said.