Hero Electric reports zero dispatches in April, blames semiconductor shortage

  • Hero Electric registered nil dispatches this month due to a severe chip shortage that led to a pause in production.
Representational image of Hero Electric scooters.
Representational image of Hero Electric scooters.

Hero Electric announced it had zero dispatches to dealers in April as the electric two-wheeler maker was hit by a severe semiconductor shortage that resulted in a pause in the production. Hero Electric shared it experienced extreme chip shortage and supply chain constraints this month. The EV maker added that the entire automotive industry continues to struggle with the ongoing global chip crisis that has forced many automakers to slash their production or put a halt to it.

Hero Electric said it has further increased the waiting list for its customers to 60 plus days and some of the dealerships have no stock to display. Considering the situation, Hero Electric CEO, Sohinder Gill said, it is like putting an emergency brake on a fast-moving train. “Our sales were almost doubling month-on-month and we somehow managed with sourcing from different geographies but the war (Ukraine) collapsed a major supply chain resulting in this disruption," he said. The company has geared up alternate sources and would soon resume production, added Gill.

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Meanwhile, Gill said the company will focus on enhancing its factory capacity to increase production and also revisit systems and processes for batteries to ensure the best quality for the electric scooters. He also shared his thoughts on the recent fire incidents related to electric vehicles. “we believe that even the best of the companies should introspect and constantly improve their designs and quality to repose confidence in the electric mobility that is going through such a robust growth path," further added Gill.

Hero Electric recently collaborated with a tech-enabled electric vehicle-based logistic company called EVIFY and announced to provide them with 1,000 EVs in the next two years. The company will also provide 500 EVs which will be deployed by EVIFY in multiple Tier-II and Tier-III cities by the end of the year.

(With inputs from PTI)

First Published Date: 29 Apr 2022, 14:39 PM IST

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