13 Jul 2021
Posted in Automotive
Hero Electric aims for EV leadership with new business expansion plans in India, says GlobalData
Following the news that Hero Electric Vehicles, the electric arm of India’s leading two-wheeler company Hero MotoCorp, will invest INR7bn as part of its business expansion plans by 2025;
Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading data and analytics company, offers his view:
“Hero Electric mulling investments in electric two-wheeler segment is a positive development for the Indian electric vehicle (EV) market as the stakeholders are confident about the future of EVs, particularly the two-wheelers in India and hence investing significantly.
“Despite the COVID-19 turbulence, Hero Electric sold 54,000 units in 143,837 units big electric two-wheeler market in FY2021. With further investments planned across R&D, technology, product development, marketing, dealership expansion, supply chain and service network, Hero Electric looks to claim market dominance similar to what Hero MotoCorp presently has in the ICE two-wheeler market. The company also aims sales of a million electric vehicles annually by 2025/2026.
“The electric two-wheeler segment presently is a hotspot in the Indian market with significant growth potential. The market has witnessed new entries and ‘expansion of investments’ from the existing players. Hero Electric is ramping up its production capacity by four times and aims an additional 1 million units by 2026. Ola’s future factory aims at manufacturing over 10 million units annually. Conducive policies such as incentives and subsidies by central and state governments, tax benefits and other factors including the growing last-mile delivery services, low-cost ownership, increasing ICE two-wheeler costs and fuel prices are expected to support India’s transition to electric in the near to mid-term future.”