Hero Electric To Pump In Rs 500 Crore To Beef Up Operations
Hero Electric has firmed up plans to invest over Rs. 500 crore until 2023 to expand its manufacturing capacity as well as R&D infrastructure. Being the leading player in the electric two-wheeler space, the company is also looking to establish a greenfield facility in the Southern part of the country. It is also planning to expand its existing facility at Ludhiana plant next year which currently has an installed capacity of 40,000 units per annum.
“We are looking to build our second facility in the southern part of the country this year. Although it will be more of an assembly facility, its capacity will be three times that of our existing plant at Ludhiana. By 2019, we aim to expand the output at our current plant too. So with all this manufacturing activity, we are looking at an investment of around Rs. 500 crore over the next five years. By 2023, we aim to sell around 5 lakh units per annum,” said Hero Electric Managing Director Naveen Munjal.
As part of its expansion plans, Hero Electric will also roll out 6-8 new electric vehicles during the year. It has also unveiled three new products- AXLHE-20, A2B Speed and Kuo Boost- which it plans to launch later this year. The products are part of the company’s plans to double sales every year over the next five years.
“The AXLHE-20 is a high-speed e-bike that promises the perfect blend of performance and efficiency. On the other hand, A2B Speed and Kuo Boost are premium electric bicycles that cater to upwardly mobile youth who value adventure and fitness,” Munjal said.
Hero Electric, which sold around 15,000 units in 2016-17, has already crossed over 26,000 units mark in the current fiscal and is targeting to treble sales during the next financial year. The company is also looking to expand its sales network with plans to have 450 dealers before 2020. At present, it has 350 dealers across the country.
The company also launched ‘10 Years Ahead’ campaign to mark 10 years of manufacturing electric two-wheelers. Over the past decade, Hero Electric has launched 15 electric two-wheelers in India. With 65% share of the country’s electric two-wheeler market, Hero Electric leads India’s electric mobility revolution.
