ET reported that electric two-wheeler maker Hero Electric will invest INR 700 crore in capacity expansion over the next three to four years as it expects demand for green mobility solutions to pick up soon. Mr Naveen Munjal, company’s managing director, said funds for capacity increase and setting up of new plants will be raised through debt and equity. Talks are on with strategic partners for equity as well as technical tieup.

Hero Electric, which can roll out 50,000 units every year, is targeting capacity expansion to half a million units in 3-4 years, and plans to transition its entire portfolio to lithium-ion battery-powered two-wheelers, even as rivals Hero MotoCorp and TVS Motor are planning to foray into electric vehicles.

Speaking on the sidelines of a conference in the national capital, where Hero Electric unveiled its fastest scooter, Munjal told ET that he expects the market to take off now and on his part, he is preparing for a cumulative capacity of 500,000 units in the next three to five years.

Mr Munjal said that “We expect a threefold jump in volumes this year, which means we will sell in excess of 75,000 units in 2018 itself, and we are seeing greenshoots already with the growing awareness and the strong messaging from the government. We could potentially do about half a million in the coming three to four years and, hence, we are investing in capacity.”