Hero Electric Aims To Increase Share In B2B EV Market

Mukul Yudhveer Singh
16 Mar 2023
12:11 PM
1 Min Read

The company is counting upon its partnerships and alliances to up the localisation content in its electric scooters and is hopeful of commencing operations at its upcoming Rajasthan facility in 2024.

(Left-Right) Naveen Munjal, Vandana Munjal, Sohinder Gill, Yoshitake Okuzono & Anand Kabra
(Left-Right) Naveen Munjal, Vandana Munjal, Sohinder Gill, Yoshitake Okuzono & Anand Kabra

Homegrown electric two-wheeler maker Hero Electric is keen on increasing its market share in the B2B market. Comprising last-mile logistics, bike taxis, and more such avenues, the B2B market for electric two-wheelers has proven itself as one of the biggest adopters of electric mobility.

The OEM's current retail share of electric two-wheelers (E2Ws) stands at 17% B2B and 83% B2C, Sohinder Gill, CEO, Hero Electric, told Mobility Outlook.

He said, “We are looking to increase that share to around 26%. It will take some time, but we are sure we will get there.”

Interestingly, the likes of Zypp Electric, Zyngo, and more such last-mile logistics players have recently announced aggressive plans. Moreover, MNCs like Amazon, Flipkart, and Zomato have also included E2Ws in their delivery vehicle fleets.

New Plant 

The commissioning of the OEM's upcoming plant in Rajasthan has also been postponed to the second half of 2024. It was announced earlier that the plant would be operational by the end of CY 2023.

Gill is positive that this postponement of the new facility will not impact the OEM's production volumes, as its existing facility can manufacture over 100,000 E2Ws per annum in Ludhiana, Punjab.

Previously, the company had announced that it would be investing INR 1,200 crore in building the upcoming plant in Rajasthan, and it will have the capacity to manufacture over 200,000 E2W units per annum. However, the company is yet to receive the 170-acre land parcel from the State Government.

Naveen Munjal, MG, Hero Electric, had earlier said, “This mega manufacturing facility is part of our capacity enhancement to boost EV adoption across India. It will allow the state to spearhead a clean mobility solution shift and promote ecological tourism practices.”

Partnerships & Localisation

Also on focus for the OEM is increasing localisation levels for its products. For instance, it has already announced partnerships with EV component makers like Battrixx, NIDEC, Exicom, Seksui, and many others to develop ‘grounds up’ products.

Anand Kabra, CEO of Battrixx, and Yoshitake Okuzono of NIDEC were two of the several partners of Hero Electric that were present at the E2Ws launch event of the OEM.

On localisation, Gill said that the OEM is well over these requirements set for availing subsidies but is looking to further the localisation quotient, and these partners will help in the same.

The OEM launched three new electric scooters targeted at the city speed and commuter segment yesterday. With over 98,000 units, it was one of the top sellers in the E2W segment in 2023. In 2023, over 14,500 Hero Electric 2Ws have been registered so far.

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