Hero Electric plans acquisitions, to double capacity at Ludhiana plant

In a bid to expand its electric two-wheeler operations, Hero Electric, a wholly owned subsidiary of the Hero Group, is in considering acquiring two Indian companies that make electric motors and controllers. According to Naveen Munjal, MD, Hero Electric, this move is a part of the company’s expansion strategy, for which the company is ready to spend up to Rs 20 crore.

Hero Electric currently imports controllers, motors and batteries from various manufacturers abroad, but the company wants to take full control of its operations by manufacturing these components in-house. At a later stage, Hero Electric also wants to get into making hybrid two-wheelers, which will be fitted with an electric motor as well as a small petrol-powered engine, allowing the rider to switch between the two at will.

The electric two-wheeler market in India – as elsewhere – is still very much at a nascent stage. But with the introduction of better, more powerful batteries and electric motors, these EVs should be able to start competing with conventional 100cc and 125cc scooters and motorcycles.

Hero Electric, one of the major players in India in the field of EVs, plan on investing Rs 80 crore towards increasing its production capacity at its plant in Ludhiana, to over 125,000 units per annum.