Hero MotoCorp, the largest two-wheeler manufacturer in India, has unveiled electric vehicle plans for its domestic operations. Hero, which already has a pilot project with Hero Electric to assemble e-bikes in India, is set to bring an entirely new line of electric vehicles with its own technology this year.


Hero Electric was established five years ago by Chetan Maini, who invented the Reva Electric Car that was used as a taxi by Delhi Metro Rail Corporation (DMRC). The company got into licensing agreement with Hero MotoCorp last year. With its recent tie-up with Toshiba and Denso, Hero is working on developing lithium-ion batteries for its upcoming lineup of electric scooters and motorcycles "Our target is to build Hero Electric as a separate brand. We are also building our own technology for electric vehicles, Hero will have its own e-vehicle technology which will then be transferred to Hero Electric," said Pawan Munjal, Vice-Chairman and Managing Director of Hero MotoCorp. Hero Electric has two manufacturing plants at Bawal in Haryana and Gurgaon in the National Capital Region (NCR). The company manufactures over 25,000 e-bikes a month and plans to expand production capacity this year from 30,000 to 50,000 units per month. "We have already started work on our third plant which would take another six months before we launch it," added Munjal. Hero Electric has a turnover of Rs 300 crore and expects the number to be doubled this year. 

Hero MotoCorp will make a detailed announcement in the next 15 days on its technology for electric vehicles, said Munjal. Hero Electric has already started work with Toshiba and Denso on developing lithium-ion batteries which can help Hero reduce costs by 30-40% in the future. Hero is also likely to tie up with Toshiba to produce e-vehicles in India. The company's first product is expected to roll out from the Haryana plant before the end of this year.

The company plans to develop an ecosystem around its products including setting up charging infrastructure across major cities when it launches products. Hero Electric already has a tie-up with Delhi Metro for charging Hero e-bikes at its depots.

Munjal said Hero is working with Maharashtra Industries Development Corporation to provide land near Pune where the company plans to build a lithium-ion battery plant. Hero already has three factories in India which are capable of producing four million units annually, he added.

Hero is also planning to export electric scooters and motorcycles from India. "Export will be our last phase but yes we are working on it right now," added Munjal. Hero MotoCorp exports about 5% of its production or around 200,000 units annually. It may expand the number once Hero Electric launches products in international markets.

Hero Motors had earlier announced that it would invest Rs 600 crore in Hero Electric to develop EV technology, he added. Hero Motors has already invested Rs 300 crore in Hero Electric since 2009 and Hero is looking to infuse another Rs 300 crore by 2015. Hero Motors would also consider taking the electric vehicle maker public once it reaches certain milestones, said Munjal.

Meanwhile, retailing major Future Group is planning to set up 100 stores of Hero Electric across the country by next year. The company will soon start operations at four new facilities including two manufacturing plants, which will take its total number of global manufacturing facilities to eight. This means Hero Electric products manufactured out of India (made in India ) would be available on international markets like the USA, Europe, and Japan.

Hero Electric has already started work with Toshiba and Denso on developing lithium-ion batteries which can help Hero reduce costs by 30-40% in the future. Hero is also likely to tie up with Toshiba to produce e-vehicles in India. The company's first product is expected to roll out from the Haryana plant before the end of this year."

Hero MotoCorp will make a detailed announcement in the next 15 days on its technology for electric vehicles, said Munjal." Export will be our last phase but yes we are working on it right now," added Munjal. Hero Motors had earlier announced that it would invest Rs 600 crore in Hero Electric to develop EV technology, he added. Hero Motors has already invested Rs 300 crore in Hero Electric since 2009 and Hero is looking to infuse another Rs 300 crore by 2015."

Hero electric currently sells about 5,000 units a month out of which almost 70% are exported. The company's e-bikes are available across 3,500 dealerships in India. Hero Motors exports around 5% of its production or around 200,000 units annually." The company plans to develop an ecosystem around its products including setting up charging infrastructure across major cities when it launches products."

Hero Electric already has a tie-up with Delhi Metro for charging Hero e-bikes at its depots. Hero is also working with Maharashtra Industries Development Corporation to provide land near Pune where the company plans to build a lithium-ion battery plant."

Hero Electric is a 50:50 JV between Hero Group and Shriram Capital. Hero Group is owned by Hero MotoCorp . Hero Electric is India's largest electric two-wheeler manufacturer. Hero Electric manufactures and sells around 30,000 bicycles a month in India . Hero Electric has already started work with Toshiba and Denso on developing lithium-ion batteries which can help Hero reduce costs by 30-40% in the future. Hero is also likely to tie up with Toshiba to produce e-vehicles in India. The company's first product is expected to roll out from the Haryana plant before the end of this year. The export will be our last phase but yes we are working on it right now, added Munjal.

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