Electric bike maker GoGreen BOV plans to set up a manufacturing facility for batteries with a Korean firm near Bangalore.

Announcing this at the launch of a new line of e-bikes here on Wednesday, GoGreen BOV Executive Director A. Dhivik said 60 acres in the neighbouring Kolar district had been acquired and the estimated investment in the joint venture was $10 million.

Cost-benefits

With the batteries, at least 80 per cent of the products were to be made in the State, a move expected to deliver cost-benefits. The joint venture was likely to be floated around October, he said, while refusing to divulge the name of the Korean battery manufacturer with whom the facility is to be set up.

Over 50 per cent of the parts are imported now, while the manufacturing unit of GoGreen BOV, also in Kolar, makes various components, including frame, chassis and wiring harness. The investment in the business, co-founded by Mr. Dhivik and his father Ashok Reddy, was $2 million and the company, in four years, sold over 14,000 vehicles. While Karnataka, Tamil Nadu and Kerala were the key markets now, the company wanted to expand to Andhra Pradesh, Maharashtra and a few more States.

On e-bikes, he said as they were classified under the non-motor vehicle category no road tax or registration charges were to be paid. Comprehensive and third party insurance were available. The battery is to be replaced after over two years and the cost is around Rs.7,000.

The four new models, whose costs range from Rs.38,000 to Rs.59,500, were targeted at school students in the 15-18 age group, women, small traders and restaurants.

The feature of the GoGreen BOV bikes was their range — of 60 km to 120 km per charge.

More In: Industry | Business