The company has partnered up with some industry giants to procure extra funding.
Hero Electric is currently one of the biggest electric two-wheeler manufacturers in India. With a massive 35 percent market share, the company sold more than 350,000 electric scooters in 2020, despite the ongoing coronavirus pandemic which saw its peak last year. While Hero Electric continues to enjoy market leadership, other players have been investing heavily in a bid to take the lead.
Not one to sit on its laurels, Hero Electric has made the move to ramp up production, as well. In fact, it has some lofty goals of selling more than ten million electric two-wheelers per year, as well as expanding into the global market. In order to make those goals a reality, Hero Electric has managed to procure a total of Rs 220 crore, or roughly $29 million USD from Gulf Islamic Investments, as well as its existing partner, OAKS.
Hero Electric’s CEO, Sohinder Singh Gill, told Indian motorcycle publication BikeDekho that the company seeks to aggressively expand its production capacity and product portfolio in the coming months. Indeed, Hero Electric has stated that all the funding acquired from GII and OAKS will go towards improving and optimizing its production capacity, as well as exploring new technology and innovations towards the development of better performing EVs. This would in turn enable the company to strengthen its presence in the market, as well as expand to other cities within India.
Recent changes to India’s policies concerning electric vehicles have definitely stimulated the electric two-wheeler industry. With the revised FAME II (Faster Adoption and Manufacturing of Hybrid and EV) policies, both manufacturers and consumers can benefit from substantial government subsidies. Because of this, companies like Ola Electric, Ather, as well as Hero Electric are dialing things up in order to satisfy the ever growing demand for affordable and sustainable personal mobility.