The joint venture will also enable electrification of Peugeot Motocycles
Hero Electric and Mahindra Group today announced its partnership to develop EVs. As part of the partnership, Mahindra will manufacture Optima and NYX scooters at their plant in Pithampur. This collaboration will also see the expansion of Hero’s Ludhiana facility that will help Hero to manufacture over one million EVs per year by 2022. The collaboration will also pave way towards electrification of Mahindra owned Peugeot Motocycles. The goal is to bring value to both companies through optimization of costs, timelines and expertise in the field.
Mr 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. 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 centres 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 and Farm Sectors, Mahindra and Mahindra, said, “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. Our R&D Centre in India will be integral to this arrangement as will the manufacturing facility at Pithampur, 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.”
Hero Electric currently produces Atria, Flash, NYX, Optima and Photon.