Exclusive: Hero Electric Targets Production Of 10 Lakh Units By 2022

Hero Electric, India's leading electric two-wheeler manufacturer is bullish on the growth in electric mobility in India. Speaking with carandbike in an exclusive interaction, Hero Electric Managing Director Naveen Munjal confirmed that Hero Electric will ramp up its production from the current 75,000 units per annum to 3,00,000 units by the end of 2021 in the first phase of production expansion. Then, in the second phase, Hero Electric intends to ramp up production to 10 lakh units per annum by the end of 2022.

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Naveen Munjal, Managing Director, Hero Electric spoke with carandbike in an exclusive interaction

"We're already working on a new manufacturing plant in Punjab, close to the existing plant. It's essentially in the same facility, and our first target is to increase production to 3 lakh units per year by the end of 2021, from the current capacity of 75,000 units per year. In the next phase of expansion, we will have a production capacity of 10 lakh units by the end of 2022," Munjal said in an interaction with carandbike.

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Hero Electric has a range of affordable electric two-wheelers segmented into Comfort Speed and City Speed categories

According to Munjal, the domestic electric two-wheeler industry is growing rapidly and more and more customers are looking at the advantages of total cost of ownership of an EV, compared to a two-wheeler with an internal combustion engine (ICE). With more and more 100 cc motorcycle and 110 cc scooter ICE customers switching to EVs in the next couple of years, Munjal foresees a rapid growth in demand for electric two-wheelers.

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Currently Hero Electric offers a total of 13 electric two-wheeler spread across 6 platforms, and segmented into low-speed (Comfort Speed or below 25 kmph) and city-speed (City Speed or around 40-45 kmph) categories. Hero Electric's most affordable electric scooter is the Hero Flash LX, priced at Rs.46,640, while the most expensive electric two-wheeler is the Hero Photon HX, priced at Rs. 79,940.

The Gurugram-based firm, which sold around 53,500 electric two-wheelers in the last financial year, intends to increase the number of 450 dealerships and 250 sub-dealers right now, to around 1,200 within the next two to three years. Overall, the company averaged between 8,500 to 9,000 unit sales every month, with sales in March 2021 crossing 8,500 units.