The jolts of electricity have entrenched themselves deeply in the auto industry and as a result, major manufacturers are aligning their production line with the shifting paradigm. In India, the electric bandwagon has a few manufacturers in the driving seat, one of which is Hero Electric.
Hero Electric recently announced its roadmap to manufacturing around 50 lakh electric two-wheelers per year, amid the proliferating adoption of electric vehicles. To achieve the feat, which is half the production amount of fossil-fuelled two-wheeler maker Hero MotoCorp, Hero Electric is postulating an investment capital of Rs 1,500-2000 crores, reported The Economic Times. The execution of the plan also involves setting u two massive greenfield factories in West and South India.
Talking about the expanding popularity of EVs in India, the managing director of the company, Naveen Munjal, highlighted the supply-demand ratio of EVs in India. He said how the transition in the paradigm is resulting in demand outpacing supply. According to Munjal, roughly 30 percent of all Indian two-wheelers will move to an electric powertrain by 2025.
“We are losing business – we are not able to supply. We had stopped online ordering and even slowed down dealership expansion to fulfil pending orders," Munjal told ET. He added that the two-wheeler EV maker is aiming at tripling sales to 300,000 units for the next financial year. As per the trajectory mapped by the EV maker, the company is expecting to double volumes and sales in FY22.
Recently, Hero Electric developed and established a strategic partnership with Mahindra to keep up with the exponentially increasing demand, and subsequently, competition in the Indian EV market. This strategic partnership is expected to help Hero Electric to reach its target to manufacture 50 lakh electric two-wheelers every year.
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Amid the expansion plans, Hero Electric is also tussling with court matters pertaining to the brand rights of Hero, as Hero MotoCorp, too, announced their plans to enter the EV market.
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