Mahindra & Mahindra and Hero Electric announced a strategic partnership in Electric Mobility to cater to the growing demand for EVs in the country. As part of the deal, Mahindra Group will manufacture Hero Electric’s electric bikes – Optima & NYX at their Pithampur Plant in Madhya Pradesh.
According to reports, the current collaboration contract is for 5 years. Over the contract period, the value of transaction is expected to be in the range of INR 140 – 150 crore.
With this collaboration, Hero will be able to meet its demand of manufacturing over 1 million EVs per year by 2022 by expanding their existing Ludhiana facility, as stated in the official statement by the companies. Hero Electric plans to ramp up the production capacity at its Ludhiana facility to over five lakh units by March 2022, said the company last year.
The two companies will create joint production development and knowledge sharing. The Joint development efforts will also enable electrification of the Peugeot’s Motorcycle Portfolio.
“This coming together of two industry leaders is to further enhance the manufacturing capabilities to meet demand and utilise Mahindra Group’s robust supply chain to reach newer centers 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”, said Mr. Naveen Munjal, MD, Hero Electric.
“Peugeot Motorcycles has ambitious plans in the EV mobility space in several regions of the world and particularly in Europe. This strategic partnership will bolster these efforts through joint development and a 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,” said Rajesh Jejurikar, Executive Director, Auto & Farm Sectors, Mahindra & Mahindra.
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