Hero Electric to Expand the Production Capacity to over 5 Lakhs

News Highlights

• The company aims to up its existing vehicle capacity to over 5 lakhs by 2022
• Hero scooters are the most affordable electric two-wheelers in the country
• The brand envisions growth in demand over the next few months.

India’s largest EV two-wheeler maker, Hero Electric plans to expand the capacity of its all-new production facility in Ludhiana. The reason behind this is the growing demand that the brand has witnessed lately. Talking about the initiative in detail, the company aims to drive growth in the EV two-wheeler sector. It further plans to manufacture 5 million EV two-wheelers per year by 2026.

“At Hero, we have always believed that the growth in the industry is going to see a hockey stick curve someday and the numbers from the last few months is an index of what is in store. We are witnessing huge walkins at our dealerships and are working overtime to avoid stockout situations and long waiting lists. We believe the customer is now actively considering buying Hero E-Bikes as a practical and viable alternative to petrol bikes because of attractive sticker price and ‘best in class’ savings in the total cost of ownership. We are therefore redrawing our business plans to retain the leadership position that we have held all these years,” as commented by Sohinder Gill, CEO, Hero Electric. 

At present, Hero Electric has around 4 lakh electric vehicles on road. Furthermore, the brand reported a rise in sales in the months of July and August. Not to forget, post the release of revised amendments of FAME II and additional state subsidies, Hero’s scooters became the most affordable EV two-wheelers in the country. Talking about the price, it starts from Rs 53,600 post-subsidy. Due to growing demands, Hero has been successful in expanding the experience centres and dealerships in the last few months especially to reach out to masses looking for alternative modes of mobility. Besides these, Hero Electric plans to launch exclusive experience showrooms in major centres. 

“The last few months have set the tone for the next few years to come. An extremely conducive environment given the new policies and subsidies which is supporting growing awareness among consumers. This has also led to a  tremendous shift in the industry that has directly led to a growth in demand for EV two-wheelers. We are hence ramping up our production facilities to manufacture over 5 lakh vehicles and will go on to expand to add capacities to make over 1 million vehicles every year, year on year to meet the growing demand. We at Hero are extremely bullish about the market and are looking forward to a new era of electric mobility,” as commented by Naveen Munjal, MD, Hero Electric. 

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