Naveen Munjal, managing director, Hero Electric, said the company would increase the dealership network in south from the current 65 to 125 by the end of 2008 to leverage the growth in the electric vehicle segment.
"Given the tremendous response our electric scooters have received from consumers in the south, we aim to sell 25,000 units in the 2008-09 fiscal. A robust dealership network will help us achieve this target. Moreover, we will also impart training to our dealers to educate the consumer on the benefits of our electric scooters and their features," he said.
Adding that the company had been seeing increased demand in the rural markets and tier-II towns for electric vehicles, he said the dealership expansion would focus on these newer markets as well.
In Kerala, the company would almost double its dealership network to 15 during the current year. "This is to cater to the increasing demand in urban as well as rural markets. We will also be appointing sub dealers and service points across key markets," he said. The company is currently in the process of doing its own research to get an accurate idea of the market size and potential.
On the market in south India, Munjal said, "We have sold over 20,000 units in the very first year of our operations in the electric vehicle segment. The southern states have contributed approximately 40 per cent of sale to this. According to industry reports, the market is estimated to grow by 200 per cent in the fiscal 08-09."
The company would invest over Rs 80 crore for expansion, which includes capacity enhancement at the Ludhiana plant, setting up R&D centres at Ludhiana and Delhi, marketing campaign and ramping up dealership.
