The Noida-based Lohia Group has announced its foray into the automobile sector. The company will invest Rs 150-crore to launch electric two- and three-wheeler vehicles.

The diversified business group, which has set up a subsidiary called Lohia Auto Industries, will set up a greenfield manufacturing facility in Kashipur, Uttarakhand, with an installed capacity of two lakh units a year.

The first lot of the electric two wheelers from the company would hit the market by August 2008 followed by three wheelers in November 2008.

Further, the group would also set up two research and development centres, one at the plant site and the other in Noida.
The Rs 400 crore group is currently involved in garment and handicrafts exports, steel and brass coil business and real estate.

According to the sources, the two-wheelers in below 250W category would be priced in the range of Rs 25,000-30,000, while the 500W-750W category bikes would be available between Rs 30,000 and Rs 35,000. The three-wheelers would cost Rs 45,000-50,000.

The company plans to set up 80-100 dealership networks in the country by the end of this financial year. It would also export its vehicles to the US, the UK and European countries.