Hero Electric, one of India’s largest electric two-wheeler manufacturers, expects strong demand for its products over the next 2-3 years. Speaking to car&bike on the sidelines of the launch event of Hero Electric’s updated range of electric scooters, Naveen Munjal, Managing Director, Hero Electric, outlined the company’s production ramp up plans. The company plans to close financial year 2022-23 with cumulative sales of over 1 lakh units, which is expected to grow to between 1.75 and 2.2 lakh units in the next financial year.
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Hero Electric MD Naveen Munjal says the company's current capacity will touch 5 lakh (half a million) units soon, and with the upcoming Rajasthan facility, the company will be able to meet market demand in the next 2-3 years.
“In terms of capacities, we’re building up substantial capacity. We’ve already got a plant in Punjab, in Ludhiana. We’re also building a completely new greenfield plant in Ludhiana. We’ve got an outsourced facility in Pithampur in Madhya Pradesh, Mahindra plant. Now, these two give us enough and beyond capacity for what we’re going to be doing in 2023-24. We’re also working on a new greenfield project in Rajasthan. That eventually will be able to provide 2 million units capacity at peak. That is still a while away, we don’t need that capacity right now. That we will only need in a couple of years. Within the next few months, we will touch half a million units, that will be four times the current capacity,” Munjal said.
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In the mass market two-wheeler segments, Munjal said that EVs will rapidly replace internal combustion engine two-wheelers over the next few years, and Hero Electric is getting ready to meet the increasing demand. With 5 lakh unit manufacturing capacity which the company intends to achieve in the next couple of months, the upcoming greenfield plant in Rajasthan will ramp up overall production to between 7-8 lakh units annually.
