Hero Electric will stop using lead-acid batteries and shift focus on lithium ion batteries over the next couple of years. The company claims that with the advancement in technology, government subsidy and drop in material prices, using lithium-ion batteries makes more sense despite their higher cost.
At the 2018 Auto Expo, Hero Electric showcased its new lithium-ion battery along with eight new electric two-wheeler concepts. Speaking to BikeWale, Mr Naveen Munjal, MD, Hero Electric, said that the lack of awareness among customers is the biggest challenge for electric two-wheeler businesses. The best way to go about tackling this problem is to improve the performance of the scooters. With their new lithium-ion battery, the company’s scooter range will receive a shot in the arm with better performance, bigger range and lower charging time. With the lithium-ion battery, an electric scooter can be close to performing as well as a conventional petrol-powered scooter. But as far as the infrastructure goes, the government will have to put in more efforts to change customers’ perspective.
Nevertheless, the perspective among customers has been changing off late. Hero Electric is looking forward to achieving 27,000 units sales in the current financial. However, taking into account the rate of growth, the company is bullish about selling more than 75,000 scooters in the next financial year. As for product expansion, Hero Electric will launch the production version of the AXLHE-20 concept in the next financial year. Capable of a 70kmph top speed, this scooter will boast of a 100 kilometre range.
Hero Electric currently has 500 touch points across the country, of which 350 are exclusive dealers and the rest are sub-dealers. The company is going to keep adding 00 touch points every year. The company has also expanded to selling online through e-commerce portals, although Mr Munjal admitted that the percentage of sales through this medium is very small. More than 55 per cent Hero Electric customers are either repeat customers or referrals from existing customers.
