Mahindra joins hands with Hero Electric to manufacture electric two-wheelers
Electric two-wheeler manufacturer Hero Electric has announced a joint venture with the Mahindra Group today to manufacture electric vehicles for India together. The strategic partnership between Hero Electric and Mahindra Group is worth around ₹150 crore and will continue for the next five years.
With the help of this joint partnership with the Mahindra Group, Hero Electric aims to produce one million electric vehicles per annum by the end of this year. The two companies will work towards expansion of the Ludhiana plant owned by Hero Electric to help achieve the target.
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As part of this joint venture, the two companies will also jointly produce and develop supply chain and share platform for electric two-wheelers. According to the deal, Mahindra Group will manufacture Hero Electric's Optima and NYX scooters at the manufacturer's Pithampur facility.
Naveen Munjal, Managing Director at Hero Electric, said, “The Mahindra Group has been pioneering in electric three- and four-wheelers for many years now while driving transition to EV across the consumer and B2B segment. With this partnership, we look to further enhance our manufacturing capabilities to meet demand and utilise Mahindra Group’s robust supply chain to reach newer centres in the country. We look forward to creating more synergies with them in the near future."
Rajesh Jejurikar, Executive Director of Auto & Farm Sectors at Mahindra and Mahindra, said, “I see significant value creation on a mutually beneficial basis and look forward to this partnership delivering on its obvious promise."
The joint venture will also work towards electrification of Mahindra-owned Peugeot Motocycles’ portfolio. Jejurikar added, “Peugeot Motocycles has ambitious plans in the EV mobility space in several regions of the world and particularly in Europe."
The two companies aim to create a seamless channel of communication to provide knowledge sharing among the R&D teams to build new products and technologies. This will be done keeping the Indian and global markets in mind that will help in growth of electric vehicles.