Hero Electric Vehicles to invest Rs 700 crore
The company is also ramping up research and development (R&D), marketing, dealer network expansion in order to cash in on the 'explosive growth' in demand for its electric two-wheelers.
New Delhi: Hero Electric Vehicles will invest Rs 700 crore by 2025 to rev up its business expansion, including setting up of a new manufacturing unit, for which it has raised Rs 220 crore to part-fund the activities, according to a top company official.
The company is planning to set up a new manufacturing facility with an annual capacity of 10 lakh units besides increasing production at its current plant at Ludhiana to 3 lakh units per annum from 75,000 units at present, as it targets to sell around 10 lakh units a year by 2025-26.
Moreover, it is also ramping up research and development (R&D), marketing, dealer network expansion, along with expanding its supply chain, service network and charging stations in order to cash in on the ‘explosive growth’ in demand for its electric two-wheelers.
“What we’re doing now is expanding our capacity from 75,000 units to about 3 lakh units. While we are building this up, we’re also planning on the next facility which is going to be about a million units per year and that we believe is not very far off now. It’s going to be sooner rather than later,” Hero Electric MD Naveen Munjal told PTI.
Munjal further said the company is “expanding in every direction” from manufacturing to R&D, technology, product development, marketing, dealer expansion, supply chain and service network, besides charging stations. In order to fund these activities, the company has raised fresh capital in the form part 1 of Series B funding of Rs 220 crore, led by Gulf Islamic Investments (GII).
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