Hero Electric, India’s largest electric two-wheeler company, and the Mahindra Group are collaborating to ride the electrification trend in the two-wheeler segment, the companies said.
The collaborative intent is part of Hero’s growth and expansion plans to cater to the ever-growing demand for EVs in the country. The strategic partnership will create multiple synergies to help drive adoption across the country, said Mahindra Group in a statement.
As part of the partnership, Mahindra Group will manufacture Hero Electric’s e-bikes – Optima & NYX at their Pithampur plant to meet the growing demands of the market.
With this collaboration along with the expansion of their existing Ludhiana facility, Hero will be able to meet its demand of manufacturing over 1 million EVs per year by 2022. This will further enable them to drive adoption of a cleaner mode of transport.
"This 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 centers in the country," Naveen Munjal, MD, Hero Electric, said in a statement.
The long-term partnership will also see both the companies make the most out of each other’s deep knowledge of EVs and drive new product development in the next few years. We look forward to creating more synergies with them in the near future, he said.
The joint development efforts will also be a key factor in developing the platform approach to help electrification of the Peugeot Motocycles’ portfolio. This is expected to bring significant value to both parties through optimization of costs, timelines, and shared knowledge in this dynamic, fast growing global EV environment.
“Peugeot Motocycles has ambitious plans in the EV mobility space in several regions of the world and particularly in Europe. This strategic partnership will bolster these efforts through joint development and a platform sharing approach leveraging the combined strengths of the two businesses," Rajesh Jejurikar, executive director, auto and farm sectors, Mahindra & Mahindra said.
The company's R&D Centre in India will be integral to this arrangement as will the manufacturing facility at Pitampur, which already supplies Peugeot with EV products. "I see significant value creation on a mutually beneficial basis and look forward to this partnership delivering on its obvious promise,” said Jejurikar.
The two companies will create a seamless channel of communication to aid knowledge sharing among the R&D teams to build new products and technologies. This will be done keeping the Indian and global markets in mind that will not just further the growth of electric vehicles, but also go on to set benchmarks for faster adoption in the industry, the statement said.
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