Swaraj Baggonkar Moneycontrol News
India’s largest electric vehicle producing company Hero Electric has put off plans to launch a high performance electric scooter, which was showcased at Auto Expo 2018.
Concerns over the prohibitively high end-cost to consumers has led the Delhi-based company to temporarily halt its commercial launch plans for the scooter. Estimated cost of the fully electric scooter, codenamed ALXHE-20, will be upwards of Rs 1.5 lakh.
Speaking to Moneycontrol, Naveen Munjal, Managing Director, Hero Electric, said, “We are working on pricing. Though the technology exists with us for that kind of a product, it will fall in a very niche market and will be very expensive (more than Rs 1.5 lakh).”
Last year, Hero Electric clocked sales of 30,000 units in India. It crossed that level in September and hopes to end the year at 50,000 units. Next year, the company is targeting sales of 75,000-85,000 units.
Focus for the company will remain on generating volumes through sale of affordable electric scooters. After reaching a certain threshold and subsequent development of the market, the company may revive launch plans of ALXHE-20.
“Such kind of expensive scooter will thus get very small volumes. We are a mass volume player. We have put that on the back burner. If our focus shifts to that kind of products, then those products will become the mainstay of our portfolio. We rather be a mass player,” Munjal added.
Powered by a 6,000 watt electric motor (8.15ps) ALXHE-20 has a top speed of 80km/hour, which is nearly twice Hero’s mass market product Photon. The ALXHE-20 has a range of 110 km on a full charge compared to 80 km for the Photon, which is priced at Rs 47,000.
The market for high performance electric two-wheelers is gathering pace, with a number of startups readying launches for the segment. Bengaluru-based Ather Energy has launched India’s most expensive electric scooter Ather 450 priced at Rs 1.25 lakh.
Ather claims that deliveries for 2018 is already booked out. A booking made now will fetch a delivery only in Q3 CY19.
Munjal hinted there may be a number of changes made to the ALXHE-20 before it is formally launched. The company may have to tune down the power with another battery pack and a different motor to bring down costs.
“We have to make a number of changes to make it more affordable. Our product is more expensive and powerful than the product marketed by Ather. We will have a product in that category but later on,” Munjal added.
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