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auto | IST

Hero Electric to sell a million units in next five years, says MD Naveen Munjal

Naveen Munjal, managing director of Hero Electric is betting aggressively on the electric two-wheeler market in India. He has just signed a deal for Rs 160 crore investment by selling a minority stake to Mumbai based Alpha Capital.
“We are looking at almost hundred thousand units by the end of next year and we want to go up to a million units in the next five years, which is an aggressive growth and will need more rounds of funding,” Munjal told CNBC-TV18.
Hero Electric which has been around for a decade sold 30,000 units in 2017 and holds a 45 percent market share. The company currently has four products in the market and is looking to rapidly increase capacity.
On how the Rs 160 crore investment will help the company Munjal said, “The investment will go a long way in creating awareness in the market, expansion of our manufacturing facilities and towards newer products that will deliver higher speeds. Our entire range is lithium iron high speed. The investment will also help us heavily in the R&D space.” Hero Electric would soon need to attract more rounds of investment, he added.
Munjal highlighted that his company would like to do substantial business in the ecommerce and B2B (business to business) space apart from shared mobility. “We are already working on shared mobility with Zoom Car in Karnataka and we are also targeting ecommerce and B2B. There is no reason why food can be delivered via electric vehicles but ecommerce goods are delivered via ICE (internal combustion engine) vehicles,” he said.
Hero Electric would be focussing aggressively on youngsters in the 16+ and 18-27 range. The company would soon be bringing in new products offering higher power, torque and range.
Hero Electric would like to target Asian and Southern European markets in the near future along with traditional markets in Europe, Latin America and Japan, Munjal said.