Hero Electric Vehicles, India’s largest electric vehicles maker has announced the first part of their Series B funding of Rs 220 crores.
Gulf Islamic Investments (GII) led the round along with participation from OAKS. The company will direct this investment towards the objective of further supporting the EV industry and ecosystem.
The electric 2-wheeler market leader will allocate this investment towards expanding production capacity, consolidating market position to strengthen market leadership, invest in technology and grow footprint across India like markets, the Gurugram-based company said.
To achieve the vision of doubling sales every year, the company plans to make significant additions to its manufacturing capacity by setting up multiple plants over the next couple of years.
Hero Electric will invest at least Rs 700 crore to raise annual production capacity to more than 1 million units over the next four years from around 75,000 units per year presently. These new capacities will come up at two or three locations, including one which will be closer to a port for easier exports.
It will also focus on India-centric, flexible, and cost-effective innovations that will drive the growth of electric mobility which is in line with making India the EV hub of the world, the company said in a release.
Naveen Munjal, Managing Director, Hero Electric, “The electric vehicles market has undergone tremendous change over the last few years since we raised our first round of funding. The policies are extremely conducive for the growth of the segment and despite the pandemic, the company is poised to grow at over 2X from the last fiscal."
"Hero aims to sell over 1 million units per year in the next couple of years. This round of investments which is a first of a larger scheme will help expand our manufacturing capacities, increase R&D spends that will enable us to continue to launch innovative products to disrupt the category,” Munjal added.
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