Hero Electric joined hands with Mahindra & Mahindra Group for large-scale production of EVs and EV platform development in India. Under this venture, Hero electric claims to manufacture 1 Million EVs a year.
- Hero Electric joined hands with Mahindra for large scale EV product development and mass production.
- According to the deed, Hero Electric’s Optima and NYX electric models are to be manufactured by Mahindra Group at its Pithampur plant.
- The amount of joint investment is expected to be 140-150 crore for a period of 5 years.
- With the expansion of existing Ludhiana facility, the partnership is expected to meet Hero Electric’s demand of manufacturing over 1 million EVs a year.
New Delhi: Amidst the EV flux in India, wherein EV sales have touched a record high, the biggest news came in this Wednesday when a traditional ICE company Mahindra group joined hands with EV maker Hero electric for EV product development and mutual share of R&D from both the sectors.
India’s largest electric two-wheeler manufacturer, Hero electric formed a joint venture with ICE Automobile giant Mahindra and Mahindra group. The 5-year partnership bound by an investment of 150 crores from both parties is expected to launch state-of-the-art EVs in India.
Along with the expansion of their existing Ludhiana facility, the partnership enable Hero Electric to meet its demand of manufacturing over 1 million EVs a year. According to the deed Hero Electric’s Optima and NYX electric models will be manufactured by Mahindra Group at its Pithampur plant.
According to Mahindra and Mahindra group, the joint venture is expected to help the electrification of Peugeot Motorcycles in which’ M&M has a controlling stake. The company expects the venture to bring value for the company by cost optimization and shared knowledge, during a time when auto sales are lowered in India due to the flux of EVs.
According to the Centre for Energy Finance (CEF), Hero electric currently leads the electric two-wheeler segment in both sales and innovation with 40,528 units in sales and holds about 37 percent of the EV market share in India. With this venture, Hero electric expects to double its capacity to 1 million units by the end of 2022.
Hero electric’s take:
Navin Munjal, Managing Director of Hero electric stated, In order to meet the growing demand for EVs in the nation, Mahindra group is a perfect fit as a partner to meet the company’s goals to increase the production capacity to 5 million in the next five years. He claims both companies can benefit from the venture by collaborating in different areas.
Navin Munjal stated, “ The venture of two industry leaders is to enhance the manufacturing capabilities to meet the growing demand of EVs and to utilize Mahindra Group’s robust supply chain to reach new centers in the country. The long-term partnership will also see both the companies make the most out of each other’s deep knowledge of EVs and drive new product development in the next few years. We look forward to creating more synergies with them in the near future,”
Munjal predicts an exponential rise in demand for electric two-wheelers, specifically from the eCommerce delivery sector. He stated, “We are firm believers that the EV market in India is going to explode. The growth in coming years is going to be faster than what we have ever seen in the automotive sector,”
Mahindra group made a very positive remark about the venture stating it to be different from traditional ones involving equity partners or launching a co-branded product.
Rajesh Jejurikar, executive director at Mahindra and Mahindra stated, “ The venture is a strategic partnership for manufacturing and will progressively involve platform-based product development and creating synergy for the businesses,”
The long-term partnership will help both the companies make the most out of each other’s deep knowledge of EVs and drive into new product development in the upcoming years.
- Hero electric leads the electric two-wheeler segment in India.
- 50% of vehicles sold by Mahindra will be electric by 2030.