Hero Electric Partners With M&M To Boost Capacity To 10 Lakh Scooters A Year
As part of the partnership, M&M will manufacture Hero Electric’s most popular models—Optima and NYX.
The Mahindra Group and Hero Electric Vehicle Pvt. have partnered to manufacture battery-powered two-wheelers as demand for EVs picks up amid rising competition in India.
India’s largest electric two-wheeler maker struck a five-year strategic partnership with the Mahindra Group, according to a joint statement on Wednesday. Mahindra & Mahindra Ltd. will manufacture Hero Electric’s most popular models—Optima and NYX—at its Pitampur, Madhya Pradesh plant, it said.
Hero Electric said the the collaboration, along with the expansion of existing Ludhiana facility, will help the company meet the demand of more than 10 lakh EVs a year.
“The coming together of two industry leaders is to further enhance the manufacturing capabilities to meet demand and utilise Mahindra Group’s robust supply chain to reach newer centres in the country,” Naveen Munjal, managing director of Hero Electric, said in the statement.
The joint efforts will be key in developing the platform approach to enable electrification of the Peugeot Motorcycles' portfolio. It is expected to bring value through optimisation of costs, timelines, and shared knowledge, Mahindra group said.
“Peugeot Motorcycles has ambitious plans in the EV mobility space in several regions of the world and particularly in Europe," Rajesh Jejurikar, executive director, auto and farm sectors, M&M told BloombergQuint. "This strategic partnership will bolster these efforts through joint development and a platform-sharing approach leveraging the combined strengths of the two businesses.”
The R&D centre in India will be integral to this arrangement as will the manufacturing facility at Pitampur that already supplies Peugeot with EV products, Jejurikar said.