According to a senior executive of the company, Hero Electric Vehicles will invest 700 million rupees by 2025 to accelerate its business expansion, including the establishment of a new manufacturing unit, for which the company has raised part of the 220 million rupees.
The company plans to build a new manufacturing plant with an annual production capacity of 1 million vehicles while increasing the output of the existing Ludhiana plant from the current 75,000 vehicles per year to 300,000 vehicles, as it intends to sell approximately 1 million vehicles per year. By 2025 26.
In addition, it is also stepping up research and development (R&D), marketing, expanding the dealer network, and expanding the supply chain, service network, and charging stations to take advantage of the “explosive growth” in its electric second-generation demand Dealer.
“What we are doing now is to expand our production capacity from 75,000 to about 300,000. While we are building this, we are also planning the next facility, which will have about 1 million units per year. “I don’t think this is counted. too much. It’s far away now. This will happen sooner or later,” Hero Electric CEO Navin Munjal told PTI.
When asked about investment, he said: “In the next few years, until around 2025, we expect to invest about 7000 crores in these properties. This is our lowest expenditure on these facilities now.” Munjal also said that the company is “expanding in all directions,” from manufacturing to R&D, technology, product development, marketing, dealer expansion, supply chain and service network, and charging stations.
To fund these activities, the company raised 220 million rupees in new capital under Part 1 Series B funding led by the Gulf Islamic Investment Corporation (GII). “This is our current investor OAKS, who invested in us in 2018, and a new investor who came to GII,” Munjal said, but did not disclose the amount of capital received by the company’s two investors.
Although the newly raised funds meet the immediate expansion needs, he said, “We need to find another round (fundraising), which will be much larger. We may raise funds again next year, which will be Another expansion in production.” and the market. “Munjal said that as FAME II plans to increase support for electric two-wheelers and accelerate demand, Hero Electric is preparing for its expected future exponential sales growth.
“In 201920, before COVID, we sold approximately 46,000 units. In 2021, despite the interruption caused by the first wave of COVID19, we still sold approximately 54,000 units. This year our goal is 100,000 units… I am this year This number can be reached,” he said.
“In general, we expect to sell at least 1 million units per year in the next five years from 2025 to 2026,” Moncal added.
Commenting on the company’s investment in Hero Electric, Pankaj Gupta, founding partner and co-CEO of GII, said: “Hero Electric has become the country’s market leader in electric vehicles and is very capable of exponential growth in the next few years”.
GII recognizes the increasingly important role of electric vehicles in reducing pollution and their presence in India, one of the most populous countries in the world, and the company’s key investments in the company’s global strategy. As green investors, EVs are playing an increasingly important role. Great, Gupta added.
Similarly, OAKS founder and CEO Vishal Ootam said: “We believe that the electric vehicle market will grow exponentially in the next few years. We are confident that this round of investment will put the Hero Electric Vehicles brand firmly in the foreground.”