Hero Electric

Hero Electric, India's first e-scooter maker, enters insolvency under IBC with Rs 301 crore in admitted claims; bidders invited as creditors decide its fate amid EV market growth

The National Company Law Tribunal (NCLT) has directed initiation of insolvency proceedings against Hero Electric after admitting a plea filed by Metro Tyres, an operational creditor claiming a default of Rs 1.85 crore. As per provisions of the Insolvency & Bankruptcy Code (IBC), NCLT has appointed Bhoopesh Gupta as Interim Resolution Professional to run the company after suspending the board of Hero Electric. The Delhi-based bench of NCLT rejected the contentions of Hero Electric of a pre-existing dispute with the operational creditor saying that it was "not just a moonshine or feeble legal argument". The objections raised by Hero Electric are not found "tenable in law" and have been duly negated by Metro Tyres, which had supplied tyres and tubes to the company. "In the facts and circumstances of the instant case, we are of the view that the corporate debtor has not been able to raise a plausible contention regarding the pre-existence of dispute between the parties. Hence, the ...

Hero Electric said it was willing to resolve the dispute with the ministry, which had demanded the disgorgement of Rs 133 crore paid to the company in sops, citing alleged violations of FAME II norm

Sources close to the firm indicate that Hero Electric has rejected claims from a segment of its 800 dealers, who allege that the company owes Rs 500 crore in advances for electric two-wheelers

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In addition to taking legal action in court, the ministry is also "debarring" these OEMs from participating in any other government schemes administered by the ministry

Hero MotoCorp domestically sold 14,046 units of Vida in the April-December period in 2023-24. Vida comprised 4.53 per cent of its total scooter sales in the same time period, as per the SIAM data

With an aim to accelerate its electrification journey, Hero MotoCorp plans to bring three new electric two-wheelers in the next one year, company CEO Niranjan Gupta said on Tuesday. The company, which unveiled its new performance bike MAVRICK 440, is also ramping up production to 10,000 units a month to meet demand for motorcycles in the segment. "In FY25, we will launch electric scooters in the mid-price segment and in the economy segment to extend our Vida range," Gupta said in an interaction on the sidelines of the Hero World 2024 event here. Further, he said, "We will be launching another electric two-wheeler in the B2B last mile delivery segment, which is a big segment," he added. On the possibility of launching electric bikes through the company's tie up with California-based Zero Motorcycles, he said it will take some time as the market is still developing in India and is still costly. However, he said the technology from the partnership will be used to develop electric ...

Withdrawal of government's incentive on sale of electric two-wheelers in April would prompt industry players to work hard and this could result into one or two more years of stagnated growth, Ather Energy's CEO and co-founder Tarun Mehta said on Friday. "The industry is no longer entirely dependent on subsidies for survival but an early discontinuation of the subsidy in April would prompt industry players to tighten their belts and work hard. "Despite this resilience, such a scenario would still result in one or two more years of stagnated growth, pushing the industry further away from its targets," the CEO of the electric two-wheeler firm said in a statement. The central government provides incentives on the sale of two-wheelers, three-wheelers, and four-wheelers under the FAME-II (Faster Adoption of Manufacturing of Electric Vehicles in India) scheme, which is ending in March this year. In June last year, the central government has already reduced the subsidy amount on electric .

As a result, Hero Electric has made it clear that it, too, is willing to make a similar settlement of any violations that the ministry might ascertain after examining its case

The company has business in more than 80 countries which include geographies of Asia, Africa, and Latin America. Last week, the company announced its entry into the European market as well

In a meeting with officials of the DHI, the company has said the period for which the government is demanding a refund of subsidies of Rs 130 crore does not apply to it

Hero Electric on Thursday said it will diversify into premium segment under the A2B brand as it aims to create differentiated brands to cater to multiple segments in the electric mobility space. Under the A2B brand, the company will introduce a diverse portfolio of premium products including electric bikes, scooters, and other new variants in the category. "We are embarking on a de-aggregation strategy with specific brand offerings in different segments. This tactical move aims to focus on our traditional turf with the Hero Electric brand, while allowing us to break into newer segments as competition builds up in this sector," Hero Electric MD Naveen Munjal said in a statement. Hero Electric CEO Sohinder Gill said the company believes that differentiation is key to market dominance. "Going forward we will enter categories under specialist brand entities to bring focus to the market segments they represent, complementing the Hero brand as a legacy player in the mass mobility segment

In June, electric two-wheeler sales decreased in India by 56.3 per cent month-on-month (m-o-m) to 45,806 units, primarily due to the aforementioned price hikes

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The dip in sales has come after electric two-wheeler manufacturers hiked the prices of their products by 15-18 per cent

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'We are talking of a practical solution and not digging our heels in saying 'we don't have to pay you a rupee'

Hero Electric, on the other hand, said that their case was being settled in a manner similar to that of Ola, Ather, TVS, and other companies