Hero Electric partners with Mahindra to build over 10 lakh EVs a year

Hero Electric is partnering up with Mahindra & Mahindra to ramp up its production of EVs. The new partnership is expected to create multiple synergies to help drive the adoption of electric vehicles in the country. Hero Electric will be using Mahindra’s facility to multiply its EV production substantially.

The companies have jointly announced that Mahindra Group will manufacture Hero Electric’s most popular electric bikes – Optima & NYX at their Pitampur plant near Indore. This new plant will add to Hero Electric’s production from the Ludhiana facility. According to the companies, this new partnership will help the companies meet the demand of manufacturing over 1 million EVs per year by 2022.

What’s in it for Mahindra?

The partnership will also be a key factor in developing an electric platform for Mahindra’s Peugeot Motorcycles. The partnership will allow both parties to optimize costs, timelines, and share essential knowledge on EVs.

Speaking on the announcement, Naveen Munjal, MD, Hero Electric said, “Hero Electric has been leading the Electric two-wheeler sector in the country. To further deepen its roots and strengthen the leadership, Hero Electric has announced a partnership with the Mahindra Group, which is leading the EV transition in the electric three and four wheelers space.”

He further added, “This coming together of two industry leaders is to further enhance the manufacturing capabilities to meet demand and utilize Mahindra Group’s robust supply chain to reach newer centers in the country. 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.”

Rajesh Jejurikar, Executive Director, Auto & Farm Sectors, Mahindra & Mahindra Ltd., said, “Peugeot Motorcycles 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.”

He further added, “Our 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. I see significant value creation on a mutually beneficial basis and look forward to this partnership delivering on its obvious promise.”

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