Hero Electric To Raise Capacity To Manufacture 5 Million Electric Two-Wheelers Annually In India
Hero Electric has prepared a roadmap to augment capacity to produce five million electric two-wheelers annually in India.
The company will require funds in the tune of Rs 1500 crore-Rs 2000 crore to implement this plan.
The vision includes establishing two greenfield factories in the southern and western parts of the country.
Naveen Munjal, managing director (MD) of Hero Electric, told the Economic Times (ET) that the transition to electric vehicles (EVs) is taking place swiftly in India.
He revealed that demand is outpacing supply at this moment. Munjal expressed that around 30 per cent of the Indian two-wheeler market is likely to move to EVs by 2025.
He explained that the planned greenfield facilities in southern and western India will assist in alleviating the geographical risks associated with the business. According to him, these plants will also enable the company to develop an efficient supply chain mechanism.
“We want to retain the leadership; we are confident of holding on to at least one-third of the market in the coming years,” Munjal was quoted by ET.
At present, Hero Electric has an installed annual capacity of 250,000 each in Ludhiana and Pithampur. They are also looking to meet the higher demands through their contract manufacturing agreement with Mahindra & Mahindra (M&M).