Published on Wed, Jul 09, 2008 at 15:01 | Source : Moneycontrol.com
Updated at Wed, Jul 09, 2008 at 16:41
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Hero Electric plans major expansion
Hero Electric, a 100% subsidiary of Hero Group and India’s largest manufacturer of energy-efficient, environment-friendly electric two-wheelers, announced the details of its plans to ramp up production even as it welcomed the tax rebate on electric vehicles announced by the Delhi and other state governments
Hero Electric, a 100% subsidiary of Hero Group and India's largest manufacturer of energy-efficient, environment-friendly electric two-wheelers, today announced the details of its plans to ramp up production even as it welcomed the tax rebate on electric vehicles announced by the Delhi and other state governments.
The Delhi government, to mitigate the rising fuel prices and promote eco-friendly, non polluting means of transport, has recently announced a 15 per cent subsidy on the base price of the electric vehicle (EV) and a 12.5 per cent exemption of VAT. This translates into a subsidy of 24.5% on the ex showroom price of the Electrical Vehicles.
"We welcome these initiatives," said Naveen Munjal, MD. "The tax benefits will give a much needed boost to vehicles that are not only more environment friendly but also meet the need of the times. Fuel costs are climbing rapidly making the running cost of Petrol driven two wheelers out of reach of many a customers. Moreover, electric two-wheelers make for easier mobility. These are easier to handle, safer than the heavier two-wheelers and, as such, do not even require licences."
Hero Electric two-wheelers can run between 50 km and 70 km per battery charge; each charge consumes one unit of electricity. Hero Electric offers 4 models between Rs 15170 and Rs 24600, not only are the Hero Electric Scooters the most economically priced, at Rs 0.10 (10 paisa) per kilometre, they are also the least expensive to operate, almost 1/10th of the cost of running a petrol driven scooter.
The Company announced that it will invest around Rs. 70 crore in expansion initiatives that involve upgrading and enhancing capacity at its state-of-the-art Ludhiana plant, increasing product range, and stepping up research and development. In addition to a new R&D facility already coming up in Delhi, Hero Electric has also set up a Design Cell focusing on innovation that will enhance style as well as improve performance.
It is set to launch a new model in the high-speed segment in August 2008.
To meet increasing demand, even before the expanded plant capacity is commissioned, Hero Electric announced that it would introduce a second shift to increase its production to 440 vehicles per day on two shifts from the current level of 220 vehicles a shift.
Hero Electric is targeting sales of over 70,000 vehicles this year, a more than three-fold increase from the 21,000 units sold last fiscal. It plans to expand its network of dealers across the country, adding almost 100 more dealers to the existing 170 by 2008-end.
