Hero Electric has one of the widest portfolios of electric two-wheelers in India with as many as 14 models in its lineup
Hero Electric was among the first major brands to set foot in the electric vehicle space in India by launching its electric two-wheeler back in 2007. Today, there are multiple players in the industry, especially in the battery-powered two-wheeler space, including established auto brands as well as newly founded EV startups.
Despite multiple new entrants in the battery-powered two-wheeler segment, Hero had held its top spot; until last month when Ola Electric took the numero uno position. In April 2022, Hero Electric was unable to dispatch a single unit to any of its dealerships across the country.
Hero Electric Confident Regaining Top Spot
However, the Delhi-based EV manufacturer is confident of regaining its position as a market leader in the near future. Managing Director of Hero Electric, Naveen Munjal assured that the company will make a turnaround very soon. Thanks to an acute shortage of semiconductor chips, Ola Electric was able to dethrone Hero from the top position last month.
Munjal revealed that Hero remains committed to triple sales and regaining its leadership position even though chip shortage is likely to impact its operations for a few more months. He further added that shortages that Hero Electric currently faces are planned shortages which are temporary and not a long-term challenge.
Expansions of Sales & Production
He expects production to stabilize in the next few months although he admitted that demand is so huge that the company will not be able to fulfill it entirely. Hero Electric managed to sell around 100,000 units of its electric scooters in fiscal 2022. It has set a target of retailing around 250,000-300,000 units in the current financial year.
In order to achieve an annual capacity of 500,000 units by the end of this calendar year, Hero is expanding its existing production facility in Ludhiana, Punjab. The EV brand also has additional capacity available at partner Mahindra’s factory in Madhya Pradesh. Over the course of the next five years, Hero plans to set up multiple manufacturing facilities to achieve a cumulative capacity of 5 million units per annum.
Future Plans for Hero Electric
Hero Electric has one of the widest portfolios as far as electric two-wheelers are concerned. The brand currently retails as many as 14 models that are based on five platforms and intends to launch multiple new scooters this year. The new launches will cater to both categories- city speed and high speed. However, Hero is focussing on the former at present since the city speed segment will bring in mass volumes.
Models in the higher end will come once as drivetrains and batteries improve. Since there was no sale in April this year, Hero Electric conducted a safety month where it educated its consumers about battery functioning and how it needs to be maintained and to tell tale signs of a problem. This was in the backdrop of numerous fire incidents on electric scooters occurring across the country in recent times.