Hero Electric will set up its second production facility in South India with investment of over Rs. 200 crore
As electric two-wheelers are undeniable future of the urban mobility, Hero Electric is aiming to reach Rs. 1,000 crore revenue in the next four years by optimistically doubling its revenue each year. Sohinder Gill, Chief Executive Officer of Hero Electric, has reasons to set bountiful targets as the brand has touched Rs. 100 crore revenue for the first time in 2017.
It is a huge leap in small timeframe of 12 months as they progressed from Rs. 50 crore to Rs. 100 crore. In the wake of setting up big targets, Hero Electric is looking to continue its growth momentum by reaching a massive two lakh sales mark in the coming three to five years. With the brand grabbing hold of 15,000 unit sales in the first half of the year, loads of expectations have been put on the upcoming products.
Currently, Hero Electric retails six out of ten electric two-wheelers found in the confined space and in 2016, about 15,000 examples of the total 23,000 units sold were from the Delhi-based company. The two-fold growth is evident from the fact that last year’s total sales have already been achieved. With big guns like TVS, Mahindra and Yamaha lining up their electric scooters, Hero is looking to make the most of out of the expanding space.
It is preparing to play an integral role in the Indian government’s 2030 EV Mission. Hero is planning to establish its second production facility in the country as the land scouting process has begun in Andhra Pradesh and Telangana. For additional manufacturing potential, Hero will be investing around Rs. 200 crore in the South Indian region in the next two or three years.
Operating under a couple of shifts, the existing plant in Ludhiana has production capacity of 50,000 to 60,000 units and is said to run out of its maximum potential by 2018. Like the conventional motorcycles produced by Hero MotoCorp targeting volume-based entry-level customers, the Electric division will go on about making VFM products. As Gill said the “cheap scooters” will be at the heart of the company’s ambition to reach Rs. 1,000 crore revenue in the next four years.
The electric scooter range has been renewed except for one product in the last two years. The launch strategy would be introducing one new electrified scooter each year as the sabbatical of the past year was due to the focus being put on developing lithium-ion batteries. With promising new startups exploring the possibilities, the electric scooter segment will be the most sought-after and at the forefront of technological innovations in the coming years.
Source: ET Auto