Hero Electric to boost production capacity at Ludhiana plant

Electric scooter manufacturer Hero Electric is planning to increase production capacity at its Ludhiana plant to over five lakh units by March of next year to meet increased demand for electric two-wheelers. The company told the media that since the Covid-19 situation in the country improved, it has seen a surge in demand. With the revised amendments to FAME 2 and additional state subsidies, the electric scooters by the company were the most affordable in the country, with prices starting at Rs 53,600 (post-subsidy), it claimed. The last few months, according to Naveen Munjal, Managing Director of Hero Electric, have set the tone for the coming years. Munjal described the current environment as extremely favourable, owing to new policies and subsidies that are promoting consumer awareness. He also stated that it has caused a significant shift in the industry, which has increased the demand for electric two-wheelers. The company is expanding its production facilities to produce over five lakh vehicles per year, and will continue to expand to produce over one million vehicles per year, year on year (YoY), to meet the growing demand, he added. The Ludhiana plant of Hero Electric currently has a capacity of one lakh units per year. The company announced a Series B round of funding in June to help it expand its facilities. In India, the company has released over 15 electric two-wheelers in the last decade. Image SourceAlso read: Omega Seiki Mobility launches first small commercial electric vehicle