Hero Electric Vehicles Pvt. Ltd announced that it has received Rs 220 crore in the first phase of its Series B investment, headed by Gulf Islamic Investments (GII) and previous investor OAKS, as it seeks to boost local development while also expanding internationally.
Hero Electric, which has kept its position as the world's leading e-two-wheeler manufacturer in the first half of 2021, intends to utilize the new funds to expand production capacity, strengthen market leadership, invest in cutting-edge technology, and grow its reach in India-like countries.
To achieve rapid development and double revenues every year, the firm aims to add significantly to its production capacity over the next several years by establishing numerous plants. It has also stated that it would focus on India-centric, adaptable, and cost-effective technologies to accelerate the expansion of electric mobility in India, to make India the world's EV hub.
"Since we received our initial round of investment, the electric vehicle market has changed dramatically. The policies are highly favourable for the segment's growth, and despite the pandemic, the firm is on track to grow at a rate of more than 2X from the previous fiscal year", stated Naveen Munjal, Managing Director of Hero Electric and adding to it he told that in the next several years, Hero Electric hopes to sell over 1 million vehicles each year.
"This round of funding, which is the first of a bigger plan, will help to grow the production capabilities and boost the R&D spending, allowing us to keep launching creative goods that will disrupt the market.", he added.
The company's fundraising comes at a time when the burgeoning Indian electric two-wheeler sector is becoming increasingly competitive. The projected expansion plan calls for the electric vehicle manufacturer to triple production at its present factory in Ludhiana, Punjab, from 1,00,000 to 3,00,000 units per year, as well as build a new million-unit-per-year plant. By the fiscal year 2026, the company expects to sell around a million electric vehicles in the Indian electric vehicle market.