Haryana-based coach manufacturing company PMI Electro Mobility Solutions (PEMSPL), today announced that it will invest Rs 500 crore with its Chinese partner Beiqi Foton Motor to set up an electric bus manufacturing plant in Pune in the next two to three years, according to PTI.
PEMSPL is a joint venture wherein the coach manufacturing company holds 70 percent, while Beiqi Foton holds the remaining stake. The company said it has got orders from budget airline SpiceJet to supply electric buses for its operations at Indira Gandhi International Airport.
Anurag Agarwal, vice-chairman and executive director, PEMSPL told PTI: "Currently, we (PMI) have a manufacturing plant at Daruhera in Haryana for conventional buses which can also roll out electric buses. With new orders coming in we have decided to set up an electric bus manufacturing plant at Pune where Foton''s facility is there."
He added that Foton PMI has bagged orders to supply 700 electric buses to Uttar Pradesh in the next one year, and it has already supplied 50 electric buses to Himachal State Road Transport Corporation.
Speaking to PTI, he said that the company will be investing around Rs 500 crore in the Pune plant in the next two to three years. At present, the company says Foton PMI has 55 percent local manufacturing and complies with FAME II scheme requirement. "We intend to take this up to 75 per cent in the next two to three years," Agarwal told PTI.
According to the report, the majority of the investment will be borne by PEMSPL, while the Chinese partner could hike its investment in the JV in the future. Beiqi Foton Motor chairman Zhang Xiyong said the company has already made an investment of Rs 350 crore since it started India project in 2011.
The report further mentions that "Foton PMI will explore the electric commercial vehicles (CV) market in India and in future plans to launch other models such as medium high and light electric trucks. The company also plans to use India as the manufacturing hub for electric CVs for exports to global markets including South East Asia, Middle East and Africa."
The new plant will have a capacity to produce around 500 electric buses a month, Agarwal told PTI, adding that the construction will start by March 2020.