The partnership between Hero Electric and Mahindra will see the latter manufacture Optima and NYX electric scooters at its Pitampur plant.
Hero Electric has joined hands with Mahindra Group to produce EVs in India. The partnership between the two home-grown firms will see Mahindra manufacture Hero Electric’s Optima and NYX electric scooters at its Pitampur plant.
According to Hero Electric, the partnership will help it achieve its target of manufacturing 1 million EVs per year by the end of 2022. At the moment, the firm produces its EVs at its existing facility in Ludhiana.
Commenting on the development, Naveen Munjal, MD, Hero Electric, said, 'With this partnership, we look to further enhance our manufacturing capabilities to meet demand and utilize Mahindra Group’s robust supply chain to reach newer centres in the country. The long-term partnership will also see both the companies make the most out of each other’s deep knowledge of EVs and drive new product development in the next few years.'
While Mahindra hasn’t divulged details about its future EVs in the two-wheeler space, it’s understood that it will enter the market sooner or later with Peugeot Motocycles – a company that it acquired in 2019. The joint development efforts between Hero Electric and Mahindra will help with the ‘electrification of the Peugeot Motocycles’ portfolio’, says the official statement.
'Peugeot Motocycles has ambitious plans in the EV mobility space in several regions of the world, particularly in Europe. This strategic partnership will bolster these efforts through the joint development and platform-sharing approach, leveraging the combined strengths of the two businesses. Our R&D Centre in India will be integral to this arrangement as will the manufacturing facility at Pitampur, which already supplies Peugeot with EV products. I see significant value creation on a mutually beneficial basis and look forward to this partnership delivering on its obvious promise,' commented Rajesh Jejurikar, Executive Director, Auto & Farm Sectors, Mahindra & Mahindra Ltd.