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Hero Electric bets big on EVs, will invest Rs 1,200 crores for new manufacturing Unit

Hero Electric is reportedly setting up a brand new greenfield manufacturing unit for its electric two wheelers soon. Currently India’s largest E2W maker, the company will invest Rs 1,200 crore on the manufacturing plant that is coming up in the Salarpur industrial region in Rajasthan. Hero Electric had signed an agreement with the state government for the plant in early September and development is expected to get started by middle of 2023.

The facility will be spread over 170 acres and will have an annual capacity to produce 2 million E2W units. This will be in line with Hero Electric’s aim to reach an annual output of 5 million units by 2025. As reported by the Economic Times, the company will further accommodate a vendor company that will invest an additional Rs 400 crore into the greenfield manufacturing unit.
Recent Vahan Dashboard data indicates that E2W sales saw a 200 percent jump in July 2022 when compared to the same period in 2021, with Hero Electric leading the charts. In August, the company retained its top spot by selling 10,476 E2Ws, marking the second time it breached the 10,000 mark in a month in 2022. Hence, the announcement for a new plant comes amidst robust demand.

The Greenfield facility will utilise sustainable technologies and renewable sources of energy such as solar power. It will be equipped with modern equipment, robotics and other innovative technologies. The company is further preparing to launch three new E2W models and expanding its dealer network in the country by 80 percent.

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