Hero Electric to work on making batteries cheaper

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Hero Electric to work on making batteries cheaper

It is great to bike around for just 10 paise per km, but then, in this world, nothing comes without a downside.

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Chennai, May 13

It is great to bike around for just 10 paise per km, but then, in this world, nothing comes without a downside.

Battery powered scooters are in- Hero , TVS , Ultra Motors have all launched their products and there are other wannabes too. The products appear great for short distance, low speed commuting, but with at least one headache-you may have to replace the battery once a year.

The cost of the battery is inexorably dependent upon the international prices of lead. Last year, a battery for a low-speed electric scooter cost around Rs 3,000. Now, it is Rs 7,000.

The Indian market for these products is at its infancy. Last year, in India 7.2 million two-wheelers were sold, but only 100,000 of them were electric scooters. The cost of the battery is then an issue to reckon with for the manufacturers.

Hero Electric is doing something about it, says the company's Managing Director, Mr Naveen Munjal.

At a press conference here today, he spoke of Hero Electric "subsidising" the batteries, but only said it was working on the mechanism for it. He said that getting batteries recycled was one option. Getting the government abolish the customs duty (10 per cent basic plus CVD) would help get the prices down further. When volumes increase, Hero would be able to source batteries cheaper.

"It is not a major issue," Mr Munjal said, comparing life time ownership costs of an electric scooter and a regular scooter.

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