We all know that the future is shifting towards electric vehicles. Hero has plans chalked out for the electric revolution and plans to invest Rs. 700 crore by 2025. This would include the establishment of a new production unit, for which the company has raised Rs 220 crore.
Hero Electric also plans to build a new manufacturing facility with a 10 lakh-unit yearly capacity. The company hopes to grow output at its current factory in Ludhiana from 75,000 units per year to three lakh units per year by 2025-26, with the goal of selling roughly ten lakh units per year. Furthermore, the company is increasing its research and development (R&D), marketing, supply chain and service network, dealer network, and charging stations.
Noticing the increased demand for electric two-wheelers, Hero Electric’s managing director, Naveen Munjal, said that the manufacturing facility will be operational shortly. “In the few years since we obtained our initial round of funding, the electric vehicle market has changed dramatically.” The policies are incredibly favourable for the segment’s growth, and despite the pandemic, the company is on track to grow at a rate of nearly 2X from the previous fiscal year,” he said. “In the next few years, Hero hopes to sell over one million units per year.”
To finance these initiatives, Hero Electric has raised capital in the form of a 220 crore part 1 of Series B fundraising led by Gulf Islamic Investments (GII).
Munjal further stated that Hero Electric is ready for the expected exponential surge in sales in the future, citing the FAME II programme as a key factor in boosting demand for electric two-wheelers.
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