The first phase of the expansion plans will involve Hero Electric increasing its production capacity to 3 lakh units
Hero Electric is preparing to invest Rs 700 crore over the coming three to four years into the expansion of its plant capacity from 75,000 units to 10 lakh units, as per a report by the Times of India.
This move comes as the electric vehicle industry witnesses a surge in electric two-wheelers’ demand in the market, which is expected to rise even higher in the next few years.
The first phase of the expansion plans will involve Hero Electric increasing its production capacity to 3 lakh units.
Managing Director at Hero Electric, Naveen Munjal, said while speaking to the publication, “At the current growth rate, the electric two-wheeler market will touch 20 lakh units in five years. With a little bit of a push and more favourable policies, this number could expand to 20 per cent to around 40 lakh units a year.”
Munjal further added that the e-scooter manufacturer will look towards keeping up with the current growth trend in the electric vehicle (EV) industry, which sees the market share doubling every year.
The EV major, which leads 40 per cent of the market, currently includes in its portfolio 13 offerings in six platforms across two segments, viz., city speed and comfort speed, and aims to focus on expanding the capacity of these two segments for the time being.
“While competition is focused solely on high-speed scooters, we at Hero understand that what the consumer at large desires is a true value for money product and this is where we stand,” said Munjal.