-Aims to attract existing and potential players to invest in the state, according to the company statement
- Plans to achieve 1000 touchpoints by 2020 end while increasing production to 5 lakh units annually
- Company plans to invest 700 crores in the next three years
With mainstream companies like Bajaj Auto entering the EV space, it seems to have become all the more evident that this segment could very much be the future of transportation. But, the biggest hurdle that the manufacturers, and the potential buyers face in India is the required infrastructure. Hence, to address the same, Hero Electric has signed a partnership with the Government of Punjab to support and develop the state’s EV infrastructure.
Under the new venture, Hero Electric sees the new partnership as an opportunity to strengthen it’s positioning in the market as a leader in the current two-wheeler EV space while developing the state of Punjab to make it a potential EV hub. On the same lines, Hero Electric had also recently announced its plans to invest Rs 700 crores in Research and Development, ramping up the production and expanding the existing product portfolio. The brand plans to set up a new manufacturing facility in Ludhiana which should allow Hero Electric to bump up its production capacity to five lakh units annually over the next three years. The company will mainly focus on low-speed scooters as they are lighter on the pocket and are popularly used for last-mile connectivity.
Contributing from the other end of the partnership, the Government of Punjab will be providing incentives to the investors in the form of net GST reimbursement and employment subsidy of up to Rs 48,000 per year for the next five years. These provisions should draw the attention of new investors wanting to capitalize in the electric vehicle space.