Hero Electric to invest Rs 700 cr in plant capacity

<p style="text-align: center;"><img title="1617779958148976.jpg" alt="7.jpg" src="/ueditor/php/upload/image/20210407/1617779958148976.jpg"/></p><p>Anticipating exponential growth in electric two-wheelers, is poised to infuse Rs 700 crore over the next three-four years to increase its plant capacity from 75,000 units to 10 lakh units. In the first phase, the capacity will be hiked to 3 lakh units.<br/><br/>Speaking to TOI,&nbsp;Hero Electric&nbsp;managing director Naveen Munjal said the industry was witnessing doubling of market share each year and would corner at least 10% of the motorcycle and scooter market in five years. Hero Electric, which commands 40% of the market, will continue to keep pace with the growth.<br/><br/>“At the current growth rate, the electric two-wheeler market will touch 20 lakh units in five years. With a little bit of a push and more favourable policies, this number could expand to 20% to around 40 lakh units a year,” Munjal said.<br/><br/>The overall market size for two-wheelers has increased from 40,000 units in 2017 to 1.7 lakh units in 2020-21. Of this, Hero Electric accounted for 53,500 units. In the 14 years it has been in business, Hero Electric has sold 3.5 lakh electric scooters across the country.<br/><br/>While the current Hero Electric portfolio comprises 13 offerings in six platforms across two segments — city speed and comfort speed, the company plans to enhance the range within these two categories. It will, however, continue to monitor the demand in the high-speed segment for the time being and enter only when it develops beyond the niche market.<br/><br/>“While competition is focused solely on high-speed scooters, we at Hero understand that what the consumer at large desires is a true value for money product and this is where we stand,” the executive explained.</p>