Hero Ultra eyes $16mn sales from electric two-wheelers

Hero Ultra, a joint venture between Hero Exports Private Limited, an affiliate of Hero Cycles Limited, and UK-based electric vehicle company Ultra Motor Company, expects its electric two-wheeler sales to touch 20,000 in volume and $16 million in value by the end of this financial year.

Given the good response and with the scaling up of its showroom network, the company expects to witness 200 per cent growth in sales next year, Gaurav Munjal, deputy chief executive, Hero Cycles (bicycle and auto rim division), told mediapersons here on Monday.

According to a 2006 survey conducted by AC Neilsen, the potential of electric vehicles for 2007-08 in India is around 1.9 lakh units and is projected to grow to 4.9 lakh in 2008-09. Thus far, Hero Ulta has sold 7,000 units across the country.

The company on Monday entered into Andhra Pradesh by launching four showrooms at various locations in Hyderabad.

Munjal said Hero Ultra aimed to take its overall distribution to around 170 outlets from the present 80 by March 2008. "Of these, around 40 outlets will be in South India," he added.

It plans to launch 11 more showrooms in Andhra in cities like Warangal, Guntur, Narasaraopet, Vijayawada, Visakhapatnam, Amalapuram and Kakinada by this month end.

While ruling out the possibility of introducing electric motorcycles in the near future, Munjal said the company was looking at foraying into the three-wheeler category.

"The prototype of the electric three-wheeler, which was developed by our technical collaborator Ultra Motors, is ready and we are currently testing it in Indian conditions. We expect to start commercial production of these vehicles in 18 months from now," he said, while declining to share investment figures.