While it only sold 21,000 units last fiscal, Hero Electric is targeting sales of 70,000 EVs this year. The company has already started working towards this and has increased production from 220 to 440 units per day, by running two shifts.
As a measure to deal with rising fuel prices and to help promote eco-friendly vehicles, the Delhi government recently announced a 15% subsidy on the base price of electric vehicles, and a 12.5% exemption of VAT. This translates into a subsidy of 24.5% on the ex showroom price of electric vehicles.
‘The tax benefits will give a much needed boost to vehicles that are not only more environment-friendly but also meet the need of the times. Fuel costs are climbing rapidly making the running cost of petrol driven two-wheelers out of reach of many customers. Moreover, electric two-wheelers make for easier mobility. These are easier to handle, safer than the heavier two-wheelers and, as such, do not even require a license,’ said Naveen Munjal, MD, Hero Electric.
Hero Electric’s battery-powered two-wheelers can run between 50-70km on one full battery charge, and each full charge consumes only one unit of electricity. These EVs are priced between Rs 15-24,500 and are said to offer significantly lower running costs compared to petrol-powered scooters.
In addition to investing Rs 70-80 crore towards expansion, Hero Electric will also launch a new variant in August this year. The new EV will be more powerful and will be capable of traveling longer distances on one full charge.
