- Hero Electric counts the likes of Ola Electric, Hero MotoCorp-backed Ather Energy, Okinawa, Simple Energy, and TVS Motors are among the competitors.
- This time around, they are targeting a bigger amount and are exploring options to raise to $200 million or anywhere between $200 million and $300 million.
- With the Modi government’s emphasis on making the country self-dependent in the energy sector, various initiatives like Make-in-India, Atma Nirbhar Bharat are turning out to be game-changer.
Hero Motocorp, which has taken a progressive approach towards India’s electric vehicle revolution unlike its peers Bajaj Auto and Maruti Suzuki, has decided to raise 200-300 million dollars to finance the project. Given the Indian government’s push towards electric vehicles (especially two wheelers where India can take lead because in four wheelers the United States and Europe raced ahead), many players have entered in the two wheelers market.
Hero Electric counts the likes of Ola Electric, Hero MotoCorp-backed Ather Energy, Okinawa, Simple Energy, and TVS Motors are among the competitors. However, Hero has very long experience in catering efficient two wheelers to the middle income segment, and it will utilise that to repeat the story in EVs as well.
To finance this EV venture, Hero will raise money. This time around, they are targeting a bigger amount and are exploring options to raise to $200 million or anywhere between $200 million and $300 million. “The proceeds will go towards capacity building, product development and marketing costs,” said one of the persons cited above, as per a report by Moneycontrol.
Previously, the country’s largest electric two-wheeler company has revealed astounding data about the exponential rise in the sale of its electric vehicles. According to the data available by the company, between the 45-day window of October 1 and November 15, 2021, the company sold 24,000 units of electric two-wheelers in the country.
The number of sold vehicles is doubled if we compare it to year-on-year terms. During the same period in the year 2020, Hero was able to sell only 11,399 electric vehicles in the country. According to Sohinder Gill, CEO at Hero Electric described customers’ awareness towards the environment as a key factor behind the upsurge in sales.
Various other factors like rising fuel prices, the revival of the economy, emergence from the pandemic, a rising preference for electric two-wheelers, level playing fields for smaller electric vehicle sellers are one of the main reasons behind the rising sale of electric vehicles in India.
As reported by the TFI, India is on the cusp of the electric vehicle revolution. Hero Motocorp, the world’s largest manufacturer of two-wheelers, is set to enter the electric vehicle market with the first launch by March 2022, and aims to democratize access just like it did in the case of EVs. Hero Electric had recently in June, 2021 closed its first part of Series B funding to expand capacity and invest in newer technologies.
The Indian EV industry is currently witnessing its best growth phase owing to conducive policies and rising fuel prices, thereby leading to a phenomenal growth in customer demand.
Naveen Munjal, MD, Hero Electric, said, “For any company to scale and meet market demand seeking investments are a continuous process. As a market leader and the No. 1 EV brand, Hero is committed to lead the EV transformation in the country and grow as the segment grows.”
With the Modi government’s emphasis on making the country self-dependent in the energy sector, various initiatives like Make-in-India, Atma Nirbhar Bharat are turning out to be game-changer. Moreover, the government’s insistence on providing result-based incentives (PLI scheme) is helping the electric vehicle industry to not sit idle and improve their efficiency daily. Hero’s success is a shining example of that.