Hero Electric is gearing up to set up multiple assembly plants for the production of electric two-wheelers to meet its target of increasing sales by ten times in a span of five years.
Although the company sold only 25,000 vehicles in 2017 and the production capacity of the Ludhiana plant is more than 50,000 vehicles, it aims to build production plants with a manufacturing capacity of more than 100K vehicles.
Naveen Munjal, Managing Director of Hero Electric, said, “Our very conservative target is that we will be selling more than ten times of what we will be doing this year in the next five years. We will have multiple plants by that time. Next year, we are targeting almost three times growth over this year. At that kind of pace, we will run out of capacity from this current plant. We will have to build a new facility.”
The company is looking for a location from where exports can be easier and cheaper. As per reports, eastern and western India are currently preferred, since it would be easier to cater to the markets from these regions. Additionally, international exports would be easily facilitated.
“The idea is not to have too large but have multiple plants to be closer to the customer. We will also be in e-rickshaw business and because of the logistics cost involved in that, it has to be made in such a way that you are closer to the customers,” Munjal said.
The company currently has presence in more than 32 countries and aims to expand its reach in the upcoming years.