Right after getting rid of SsangYong, Mahindra is ready to take up some new partners. And the brand was in luck as India’s No. 1 EV company; Hero Electric was willing to shake hands. Just today, the Mahindra Group and Hero Electric have announced their strategic partnership in electric mobility. The companies say that this collaboration will help in Hero’s growth and expansion plans to cater to the ever-growing demand for EVs in the country.
What to expect
The companies seem to be running while keeping in mind three key points; First, helping each other to enhance production to meet growing demand. Second, joint product development and knowledge sharing. Third, enable electrification of Peugeot Motorcycles’ portfolio through platform sharing.
As a first step, Mahindra Group will manufacture Hero Electric’s most popular electric bikes – Optima & NYX at their Pitampur plant to meet demands. This collaboration and the expansion of Hero’s existing Ludhiana facility will together arm the brand to be able to meet its demand of manufacturing over 1 million EVs per year by 2022. The R&D teams of both brands will be in a seamless channel of communication to fast-track new products and technologies. This will not only benefit the companies but will also replenish our market with new arrivals. This platform sharing will also help in developing an approach to help electrification of the Peugeot Motorcycles’ portfolio.
Official Statements
Mr. Naveen Munjal, MD, Hero Electric said, “Hero Electric has been leading the Electric two-wheeler sector in the country. To further deepen its roots and strengthen its leadership, Hero Electric has announced a partnership with the Mahindra Group, which is leading the EV transition in the electric three and four-wheelers space. This coming together of two industry leaders is to further enhance the manufacturing capabilities to meet demand and utilize 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. We look forward to creating more synergies with them in the near future.”
Rajesh Jejurikar, Executive Director, Auto & Farm Sectors, Mahindra & Mahindra Ltd., said, “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, 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.”