Close on the heels of a successful 2007-08 and buoyed by the ready acceptance of electric two-wheeler vehicles in India, UK-based Ultra Motor Company has decided to rapidly scale its operations, expand outreach and enhance product portfolio independently.

Ultra Motor is planning to to set up an assembly unit in the national capital region (NCR) of India and is targeting an over two-fold increase in sales in the coming fiscal.

The company, which has a technical collaboration-cum-joint marketing agreement with Hero Exports to produce and jointly market electric two-wheelers in India, now proposed to disengage from the tie-up.

Ultra Motor reorganised its management team in India and unveiled plans to launch as many as six products and also increase its dealer network to 300 from the existing 170, in the new fiscal.

"Electric vehicles category is becoming more and more important globally and it will substantially grow in India as well. We are planning to sell 55,000 units in India in 2009-10," Ultra Motor chairman and CEO Joe Santana said.

As a result of the aggressive retail expansion and marketing efforts in the last financial year, Ultra Motor (in partnership with Hero Exports) has already touched 22,000 units in sales across India against a target of 20,000 units.

Ultra Motor aims to achieve break-even by the end of FY09, with an all India sales target of 60,000 units. It will launch a range of high speed as well as low speed electric two-wheelers in FY09. The company will also roll out its electric three-wheelers by the beginning of FY10.

The company plans to double the number of dealerships across India from the existing 150 to 300 thereby ensuring a pan India presence.

In order to achieve their robust future plans, the company has already committed fresh investments in new technology, products and inducted more experienced staff. The marketing and servicing team is also being strengthened across the country to service a wider dealer network.

''India has been an important market for us and offers a huge opportunity for electric two-wheelers. We have witnessed a fabulous response from the market, which reaffirms our belief that the electric vehicle (EV) category is set to grow by leaps and bounds. We are further encouraged by the preference and conversion of almost 10 per cent of the existing petrol (ICE) scooter category towards the EV category,'' Santana said.

In FY08, the electric two-wheeler category has witnessed sizeable numbers, primarily due to customer getting converted from petrol scooters. Out of the 1 million-strong petrol scooter market, electric scooters have already converted 10 per cent in its favour. Keeping this market buoyancy in mind in FY09, Ultra Motor has set itself much higher goals. It plans to achieve this by making aggressive inroads into the existing scooter and moped segment and continue to garner a substantial market share from them.

Electric two-wheelers, a totally new category in India, are witnessing good growth. As per AC Neilsen survey conducted in 2006, the electric vehicles category is estimated to grow by 150 per cent in FY09.

From a market conversion perspective in FY09, there will be an opportunity to convert at least 15 per cent of the scooter and moped segment (which would stand at 1.5 million units by end of FY08). Hence, the electric two-wheeler market would grow from the current 100,000 units to over 225,000 units.

Ultra Motor target to capture at least 25 per cent of the market.

The company expects to close the current financial year with a total sales of 24,000 units.

"If we are able to meet the target of the next fiscal then we will be actively looking at setting up a new assembly unit by the fourth quarter of FY 2010," Ultra Motor India managing director K K Bhan said.

Without giving details, he said, the company has zeroed in at a place near Gurgaon for the proposed facility.

The investment for the planned facility would be a part of the Rs150-crore India expansion plan for three years, which the company announced last year.