Tube Investments of India Ltd, part of the Rs.95.82 billion ($2.3 billion) Murugappa group has ventured into the e-bike segment with introduction of three models – BSA 250, BSA 500 and BSA 800 in Indian market.

Tube Investments manufactures cycles, automotive and industrial chains, car door frames and steel tubes. The company is the second largest manufacturer of bicycles in India, marketing top brands like Hercules and BSA.

According to the company, the eBikes will cater to the age group of 14 to 21 years, with no license required for the 250watt eBikes.

The low-speed e-bikes come with a top speed of 25 kmph and high-speed models will run up to 45 kmph. The new models will need six to eight hours of charge to run 60 to 70 km.

The e-bikes are priced between Rs 23,000 and Rs 36,000, and will be marketed under the BSA brand.

The company has set up a new facility at its Ambattur factory in Chennai to manufacture e-bikes at an investment of Rs 20 crores with a capacity to produce 100 e-bikes per day.

The eBikes market in India is presently worth Rs 450 crore and the industry analysts expect revenues to double in a year’s time.

The company plans to roll out the first bike in the market in September and anticipates a monthly sale of around 4,000 to 5,000 units.

The company will initially market the two-wheelers in South India, and based on the market responses it will be launched at national level later. The company will appoint around 70 dealers in the Tier I and II cities in the southern region.