Segway to open assembly unit, targets 500 unit sales

Segway Inc. , US-based two-wheeled self-balancing electric vehicle maker, will open a local assembling unit in India this year to meet its swelling demand as well as to boost sales further by cutting retail prices.  

"The local manufacturing facility will help to cater to the Indian market and also adapt the Segway machines for efficient use on Indian off and on road conditions," said Ankur Bhatia, executive director of Bird Group, which sells Segway in India. Segway's operations are being managed by its Indian partner.  "As taxes are lower for local assembly operations, we expect further boost in sales this year," he added. The assembly plant will come up at Gurgaon near Delhi. 

The self-balancing vehicle that has a standing board and a handle between two wheels has already sold 200 units in India since its launch in April last.  Bollywood celebrities such as Salman Khan and Ranbir Kapoor besides some corporate captains have taken home the all-surface vehicle that one rides by leaning forward or backward. Bhatia said the company could not meet all the demand due to limited allocation for the country from US manufacturer Segway Inc. 

"We have huge inquiries and orders for this personal transportation segment from airports, golf courses & resorts, police patrolling, large industrial and educational campuses," he said. All this despite a steep price tag of around Rs. 4 lakh for the one-man vehicle with a maximum speed of 25 km/hr. 

Now, the Bird Group plans to lower Segway's price point by about one-fifth when the import duty comes down due to local assembly and Segway gets VAT exemption and other benefits given to zero-emission vehicles. Bhatia said this will further boost Segway demand, while local assembling will increase its availability. 

The $150 million Bird Group, which sells Segway through 30 retail outlets, hopes to sell 500 Segways in 2011.