To open a hub in Hyderabad
In talks with motor suppliers
HYDERABAD: Hero Group, in collaboration with Daimler AG, will be launching a light commercial vehicle in 2010. It also proposes to establish an electric scooter manufacturing facility the same year in South India as 60 per cent of sales is coming from the region.
Addressing a press conference here on Wednesday, CEO of Hero Electric Naveen Munjal said the company was targeting a production of 70,000 electric scooters this year, while its plant capacity at Ludhiana was 1.25 lakh units.
The South Indian plant would come up only after the existing plant was used to full capacity.
He said the company would introduce high-speed electric scooters with a speed range of 45-45 km/hour in July apart from the launch of four other variants this year. While Ultra Motors exited from technical collaboration with Hero for making eco-friendly electric vehicles, Mr. Munjal said the world’s motorcycle major proposed to set up its own motor making unit.
The R&D spend of the company this year would be Rs. 10 crore. Besides, it was in talks with two motor suppliers.
Mr. Munjal foresaw a 70 per cent growth in the market this year.
To expand dealerships
A hub would be opened in Hyderabad on the lines of a C&F (carrying and forwarding) agent to supply the bikes across south India. The company also proposed to expand the dealerships in Andhra Pradesh from 30 to 60 and sell 12,000 bikes this fiscal.