Patna: A Japanese electric vehicle (e-vehicle) manufacturer, Terra Motors India Private Limited, has evinced interest in setting up a unit in the state if the government facilitates land for the purpose and combines it with some tax sops.
At present, Terra Motors has a manufacturing and assembling base in Calcutta, where it makes e-rickshaws that are marketed in the country under names like Samurai and Wifo. This is the first Japanese firm to show interest in Bihar after a delegation led by chief minister Nitish Kumar visited Japan earlier this year to seek industrial investment.
"We want to set up a factory unit in Bihar because it is an important market for us. But we will be able to do so only if the state government provides us some land and gives some tax benefits," Kosuke Nakagawa, chief operating officer (COO) of Terra Motors India told The Telegraph .
Nakagawa had come to Patna last week to take part in a daylong seminar on "e-vehicles: trends and technologies" organised by the Bihar Industrial Area Development Authority (Biada) in association with The Associated Chambers of Commerce of India (Assocham) and other bodies.
Elaborating about the importance of Bihar as a market for his company, Nakagawa said Terra Motors India manufactures 2,000 e-rickshaws per month at its Calcutta facility of which 1,000 are sold per month in Bihar.
"Bihar is a good and growing market for e-vehicles. It is important geographically also, as we can export our vehicles to Jharkhand, Uttar Pradesh, the Northeast, Nepal and Bangladesh too," Nakagawa added.
These rickshaws are powered by rechargeable lead-acid batteries. However, the company also manufactures lithium-ion battery operated vehicles, which are costlier.
The Terra Motors India COO said the preferred location for a unit will be around Patna for ease of communication and transportation.
Responding to the Japanese company's proposal, Biada managing director R.S. Srivastav said the state government can provide land to the vehicle manufacturer at Fatuha or Bihta in Patna district.
Srivastav said the state government will need to amend its industrial investment promotion policy to bring e-vehicles manufacturing under priority sector and provide tax benefits.
