Hero Electric To Invest ₹ 700 Crore In Punjab

Hero Electric will be investing the amount in Punjab to strengthen the company's dealer network and increase localisation levels along with investing in R&D and product portfolio.

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Hero Electric is also planning to expand to 1000 touchpoints across India by the end of 2020.

Highlights

  • Hero Electric is investing Rs. 700 crore in its Ludhiana facility.
  • It has tied up with Punjab government to invest in the EV infrastructure.
  • Hero Electric is also planning to expand to 1000 touchpoints across India

Hero Electric will be investing ₹ 700 crore in its Ludhiana facility in Punjab to strengthen its dealer network and increase the localisation levels along with investing in R&D and product portfolio. The electric two-wheeler maker has also tied up with the Government of Punjab to develop the EV infrastructure in the state and will be working in conjunction with the state government to attract existing and potential EV makers to further invest in the state. Punjab is also offering net GST reimbursement for seven years and up to 100 per cent Finance Charges (FC) and employment subsidy of up to ₹ 48,000 per year for five years which aids the adoption of green vehicles.

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Also Read: Hero Electric To Go Ahead With Expansion Plans Despite Downturn

Commenting on the collaboration, Naveen Munjal, MD, Hero Electric said "When I look back, I realise that it was the right decision to set up our first plant in Ludhiana, Punjab. The state has always supported us in all our endeavors, and we have found the right partner in them. The fact that has always enabled Punjab to be ahead of other states, is its readiness to embrace and promote e-mobility in the state and the number of incentives offered to attract investment from existing and new businesses. I am sure, Hero Electric and the state of Punjab can together make a considerable difference and lead the e-mobility in the country."

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Punjab is also one of the well-connected states in India that offers close proximity to OEM clusters in Delhi-NCR, Haryana and Rajasthan, covering 60 per cent of total production of two-wheelers in the country. Hero Electric is also planning to expand to 1000 touchpoints across India by the end of 2020 from 615 at present and will be expanding even further in three years' time. It will also ramp up its production capacity to 5 lakh units annually and will primarily focus on low-speed scooters for last mile connectivity.

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