Currently, Hero Electric has thirteen models under its lineup that are categorised into two segments- city speed and comfort speed
Being extremely confident of growth in electric mobility in the two-wheeler segment in future, Hero Electric has announced that it would be investing a whopping Rs 700 crore in this segment. A large chunk of this investment would be spent on increasing the production capacity in the coming years.
In an interaction recently, Hero Electric managing director Naveen Munjal confirmed that the homegrown EV manufacturer will invest this amount over a period of next three to four years. He further informed that the current production capacity of 75,000 units annually will be ramped up to 10 lakh units per annum.
Expansion EV market
In the first phase of expansion itself, the capacity will be enhanced to 3 lakh units. According to Munjal, at present, the industry is witnessing a doubling of market share each year and would corner at least 10% of the two-wheeler market in the next five years. Hero Electric currently commands 40 percent of the electric two-wheeler market in India and will continue to keep pace with the growth.
Munjal further went on to add that at the current rate of growth, India’s electric two-wheeler market will reach 20 lakh units in five years. Further with the help of favourable policies the industry could expand by 20 percent to around 40 lakh units per annum.
Overall market share for electric two-wheelers has risen from 40,000 units in 2017 to 1.7 lakh units in 2020-21. Out of the total sales in the electric two-wheeler segment last year, Hero Electric alone accounted for 53,500 units. In fourteen years since its inception in the Indian market, Hero Electric has so far sold 3.5 lakh electric scooters across the country.
Hero Electric & Rivals
The current portfolio of Hero Electric comprises thirteen models in six platforms that are broadly categorised into two segments- city speed and comfort speed. There are currently no offerings in the high-speed segment from the manufacturer and the company says that it will continue to demand in this category and will formally enter only when demand has pierced into the mass market.
Even though electric mobility in India is yet to reach its full potential, competition has intensified in recent months with many new players venturing into the market, especially in the two-wheeler segment.
Players like Ather Energy have been able to set new benchmarks in this segment while many others like Revolt, Okinawa and Simple Energy have exciting offerings up their sleeves as well. Hero Electric’s direct rival would be Ola Electric in terms of large manufacturing capabilities.