PMI Electro Mobility Solutions (PEMSPL) is planning to invest Rs 500 crore along with its Chinese partner Beiqi Foton Motor Company (Foton) for setting up an electric bus manufacturing plant at Pune in Maharashtra.
The investment will be made in the next two to three years. PEMSPL, which holds 70% in its joint venture (JV) called Foton PMI with Beiqi Foton Motor Company with the rest by the Chinese partner, has entered into a pact with budget carrier SpiceJet to supply electric buses for its operations at the Indira Gandhi International Airport, New Delhi.
Currently PEMSPL has a manufacturing plant at Daruhera in Haryana for conventional buses which can also roll out electric buses. PEMSPL has bagged orders to supply 700 electric buses to Uttar Pradesh in the next one year. It has already supplied 50 electric buses to the Himachal State Road Transport Corporation.
Currently Foton PMI has 55% local manufacturing and complies with FAME II scheme requirement. It intends to take this up to 75% in the next two to three years. The majority of the investment will be borne by PEMSPL, so that the Chinese partner could hike its investment in the JV in future. The company has already made an investment of Rs 350 crore since it started India project in 2011.
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 JV intends 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. The construction will start by March 2020. Initially five electric buses will be supplied for use in internal operations by the carrier and there is option to increase it further.