Hero Electric Vehicles has announced a Rs 700 crore investment to expand its business by 2025. It will include the establishment of a new manufacturing unit. To support this, The company has raised Rs 220 crore to partially fund the expansion activities.
In addition to increasing capacity at its Ludhiana plant to 3 lakh units per year from 75,000 units currently, Hero EV has planned to build a new manufacturing facility as well with a capacity of 10 lakh units. By 2025-26, the company anticipates having sold ten lakh units.
Meanwhile, Hero EV will also expand its research and development (R&D), marketing, and dealer network. It has planned to expand its supply chain, service network, and charging stations to capitalize on what it expects to be ‘explosive growth' for its electric two-wheelers.
Hero EV raised Rs 220 crore in new capital in Part 1 of Series B funding to fund these activities. Gulf Islamic Investments led the investment round (GII). It came from their existing investor OAKS, who had invested in 2018, as well as a new investor, GII.
For the time being, they have been on track to meet that target this year. Overall, they expect sales of at least a million units per year in the next five years, between 2025 and 2026.
Late Mr. Dayanand Munjal founded the brand HERO in 1956 to provide mobility to millions of Indians.
In the years that followed, the brand expanded enormously in diverse fields such as Bicycles, Motorcycles, and Healthcare, among others, and became the most renowned and trusted name in India and other parts of the world.
The company is India's first and largest electric 2-wheeler manufacturer, with hundreds of thousands of satisfied customers and counting.
Last month, it had slashed prices for its popular models by up to 33 percent following enhanced subsidies under the FAME II scheme.
The Photon HX model was available for Rs 71,449, down from Rs 79,940 previously. Similarly, the NYX HX (Triple Battery) was priced at Rs 85,136, a reduction from Rs 1,13,115 previously.
The Ministry of Heavy Industries recently modified the FAME II scheme, increasing demand incentives on electric two-wheelers to Rs 15,000 per kWh, up from Rs 10,000 per kWh uniform subsidy previously available.
In addition, the government raised the incentive cap to 40% of the cost of an electric two-wheeler, up from 20% previously.
(with inputs from PTI)
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