Hero Electric today said it plans to invest Rs 500 crore over the next five years to expand its manufacturing capacity as well as R&D infrastructure.
The company, which is a leading player in the electric two-wheeler space, plans to set up a new manufacturing facility in south India this year.
It also plans to expand manufacturing capacity at its Ludhiana plant next year as part of its aim to bolster production capacity of electric vehicles.
At present, the plant has a capacity to roll out 40,000 units per annum.
"We plan to come up with a plant in south India this year. It will be more of an assembly plant but with three times more capacity than Ludhiana. Next year, we aim to expand the Ludhiana capacity as well. So with all this manufacturing activity, we are looking at an investment of around Rs 500 crore over the next five years," Hero Electric Managing Director Naveen Munjal told PTI.
The company sold around 15,000 units in 2016-17 and has already crossed over 26,000 units mark in the current fiscal. It is targeting to sell 75,000 units in the next financial year, Munjal said.
"By 2023, we aim to sell around 5 lakh units per annum," he added.
The company is also looking to expand its sales network with plans to have 450 dealers before 2020. It currently has 350 dealers across the country.
As part of its expansion plans, the company will also roll out 6-8 new electric vehicles during the year. It unveiled three new products today, which it plans to launch later this year.
"The AXLHE-20 is a high speed e-bike that promises the perfect blend of performance and efficiency. On the other hand, A2B Speed and Kuo Boost are premium electric bicycles that cater to upwardly mobile youth who value adventure and fitness," Munjal said.
AXLHE-20 can reach a top speed of 85 kms per hour and has a range of up to 110 kilometers on a single charge. The lithium ion batter on the bike can be charged from empty to full in around 4 hours.
A2B Speed comes with a range of 70 kms along with a top speed of 45 kms per hour. Similarly, A2B Kuo Boost has a top speed of 32 kms per hour and a range of 60 kms per charge.
The products are part of the company's plans to double sales every year over the next five years.
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