Eye on Ola Electric challenge? Hero Electric to ramp up production big time
As the competition with cab-aggregator tuned EV maker - Ola Electric - is getting fierce, e-scooter maker Hero Electric has planned to increase the manufacturing capacity at its plant in Ludhiana, Punjab. The company will ramp up the capacity to over five lakh units a year, by March next year, so as to cater to increased e-two-wheeler demand.
The company will further expand its production capacity to build over one million vehicles every year, by ramping up the capacity year-on-year to meet the growing demand. Its Ludhiana plant currently has an installed production capacity of one lakh units per year.
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Hero Electric noted that after the revised amendments to FAME II scheme and additional state subsidies, its electric scooters became the most affordable in the country with post-subsidy prices starting at ₹53,600. "This has also led to a tremendous shift in the industry that has directly led to a growth in demand for EV two wheelers," the company's MD Naveen Munjal said in a statement.
He added that the last few months in the electric two-wheeler space have set the tone for the next few years to come. “An extremely conducive environment given the new policies and subsidies which is supporting in growing awareness among consumers," Munjal said.
Hero Electric, in June this year, had announced a Series B round of funding, driving the expansion of its facilities. The company has launched over 15 electric two-wheelers in the country over the past decade and is bullish about the further growth of the market.
Recently, the company called for the country to put a full stop on the sales of fossil fuel-powered two-wheelers by 2027 in order to accelerate the transition towards electric vehicles. Munjal also pointed out that India's shift towards electric vehicles has been hampered by high prices and inadequate charging infrastructure. He demanded for a stricter mandate for electrification of transportation in the the country.
(with inputs from PTI)