- Hero Electric planning to invest Rs 700 crore in the next three years
- To invest in ramping up production, expanding product portfolio and dealer network
- Considers entry of Bajaj in the electric segment as a positive sign
The homegrown electric two-wheeler manufacturer, Hero Electric, is planning to invest Rs 700 crore on its expansion plan in the next three years. The company will be majorly investing in the development of new products, ramping up the manufacturing capacity and expansion of its dealership network across India.
The investment plan was revealed by the Managing Director of Hero Electric, Naveen Munjal, in an interview with ETAuto. Besides sharing the expansion strategy, the top honcho also showed optimism about the growth of electric two-wheeler market in the near future. Notably, the last few months have been tough for the electric segment owing to the introduction of new homologation norms under the FAME II scheme.
Subsequently, speaking of Bajaj’s recent venture into the segment, Munjal said that the entry of such major manufacturers in the territory will bring along a ‘positive development’ and it is a sign that more and more petrol-powered two-wheelers will be replaced by electric ones sooner than later.
As we had reported in December last year, Hero Electric had raised Rs 160 crore from a Mumbai-based investment management company, Alpha Capital Advisors. The company is looking forward to raise more such funds from external investments as well as internal revenues. Currently, the company has one manufacturing plant in Ludhiana while it is studying different locations for setting up more facilities. Also, the company had opened seven new dealerships in May this year, spanning different cities across the country. It plans to expand it further in the months to come.
