Hero Electric, manufacturer of electric two-wheeler and a wholly-owned subsidiary of the Hero Group, is setting up a unit in Chennai. The proposed unit, with an installed capacity of 20, 000 units, is likely to commence operations in four months.
“In order to cater to the southern India market, we are setting up a new assembly unit in Chennai in a joint venture with a local partner. We plan to source components locally. Besides, the existing Ludhiana unit will act as a feeder for the proposed facility,” said Hero Electric chief executive officer Sohinder Gill.
The manufacturing facility in Ludhiana (Punjab) has a capacity of 120,000 units a year.
The company also plans to set up a motor manufacturing unit for its electric two-wheeler, which is being imported at present. “The company is currently importing motors from China and Taiwan. The proposed unit may be set either as a greenfield project with a European partner or by acquiring an exiting company,” he said.