Hero Electric aims to sell 70,000 vehicles in FY08-09 across India. It doubles its production capacity to >125000 units per year in its Ludhiana factory. Also plans to double dealership network in Southern States to push sales for increased production and doubles dealership network in Karnataka to enter Tier 2 markets. It announces Rs. 80-Crore Investment for expansion and R&D. Hero Electric already has highly two successful Low Speed Electric Scooter models in the market - Hero Maxi & Hero Optima.

Hero Electric announced its plans to launch a range of about 5 Electric Scooters during financial year 2008-09 in its low speed and high speed categories. Hero Electric already has two highly successful Low Speed Electric Scooter models in the market since 2007 - Hero Maxi & Hero Optima. The company also announced its plans to double its dealership network in the Southern State of Karnataka to leverage the growth happening in the electric vehicle (EV) segment. The company also announced an investment of around Rs. 80 crores in boosting its manufacturing plant of electric vehicles (EVs) in Ludhiana, Punjab besides the development of its R&D facility. Hero Electric has also expanded its state-of-the-art manufacturing plant at Ludhiana and dramatically stepping up research and development for innovation in EVs. Hero Electric will also be investing on training the dealers to educate the consumers on the benefits and features of Electric Vehicles.

The company has dealerships in several key towns and cities in Karnataka, which include Bangalore, Belgaum, Mysore, Hubli, Hosepet etc. and will now expand into other tier 2 markets at the Taluka level and is currently appointing dealers, sub dealers and service points to reach their EVs to the consumers at their door steps. The company also plans to open its regional office in Bangalore shortly and a Warehouse at some suitable location to ensure better distribution of vehicles in the region. Hero Electric is strengthening its marketing and sales teams locally to support the existing as well as new dealers being added to its network.

It has set up a state-of-the-art R&D cell at Ludhiana and at Delhi to develop and manufacture indigenous world-class EV motors within a year to suit both high-speed and low-speed vehicles. It is also conducting research to improve the quality, efficiency and life of batteries and other critical components that run these EVs. A high level R&D team with vast global experience in the segment has been put in place and will work on the EV indigenous motor technology, particularly on enhanced performance and speed. Hero Electric earlier entered the Electric Scooter segment in the year 2007 in technical collaboration with UK's Ultra Motors, wherein Ultra supplied the Motors for the EVs. However, with the partnership with Ultra Motors no longer in existence, Hero Electric has tie-ups in place with some of the best manufacturers of the Motor, Controller and Batteries, which form a part of the electronics of the EVs. For the long term, Hero Electric would manufacture the critical components in-house and are in the process of negotiations with some world-class motor & controller companies for acquisitions in this area.

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