Hero Electric Vehicles has announced that it’ll invest ₹700 crore to expand its business by 2025. This may include fixing of a replacement manufacturing unit and for this, the corporate has raised ₹220 crore to part-fund the activities.
Hero Electric is additionally getting to found out a replacement manufacturing facility with an annual capacity of 10 lakh units. The corporation wants to extend production at its current plant located in Ludhiana to 3 lakh units each yea from its current capacity of 75,000 units because it aims to sell around 10 lakh units a year by 2025-26. In addition to the present , the brand is ramping up research and development (R&D), marketing, expanding its supply chain and repair network, increasing dealer network and charging stations.
To grow within the electric two-wheelers segment after observing the upward demand trend, director of Hero Electric, Naveen Munjal, says that the manufacturing facility will soon be actually . “The Electric vehicles market has undergone tremendous change over the previous couple of years since we raised our first round of funding. The policies are extremely conducive for the expansion of the segment and despite the pandemic, the corporate is poised to grow at over 2X from the last fiscal,” he said. “Hero aims to sell over a million units per annum within the next few years.
To fund these activities, the corporation has raised fresh capital within the sort of part 1 of Series B funding of ₹220 crore, led by Gulf Islamic Investments (GII).
Munjal also stressed that Hero Electric is preparing for the exponential growth in sales that it expects going forward, with the celebrity II scheme increasing support for electric two-wheelers thereby accelerating demand.
