Anticipating exponential growth in electric two-wheelers, is poised to infuse Rs. 7.0 billion (US$ 95.4 million) over the next three-four years to increase its plant capacity from 75,000 units to 1.0 million units. In the first phase, the capacity will be hiked to 300,000 units.
Speaking to a daily, Hero Electric 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.
"At the current growth rate, the electric two-wheeler market will touch 2.0 million units in five years. With a little bit of a push and more favourable policies, this number could expand to 20% to around 4.0 million units a year," Munjal said.
The overall market size for two-wheelers has increased from 40,000 units in 2017 to 170,000 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 350,000 electric scooters across the country.
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.
"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.