Hero Motors Company (HMC) Group said that Hero Cycles has successfully delivered its first batch of “Made in India” e-bikes to Europe. The first batch of around 200 units has been delivered to Germany, with further units planned for the EU in future.
With this shipment, HNF brand of Hero International (HIT), marks the start of the Indian bicycle major’s plan to become a leader in the European Union (EU) market.
In a statement, HMC said that – “The shipment marks a step forward to establish HMC as the largest fully integrated e-bike company in Europe, with a well-oiled manufacturing capability in India and brightens the prospect of India as a reliable supplier to the market other than China.”
Hero International – the European bike and e-bike arm of HMC – said the company’s aim is to achieve an organic revenue of up to EURO 300 million by 2025, while adding EURO 200 million from inorganic growth.
Jeff Weiss, the London-based CEO of Hero International said – “The first HNF branded bike built in India has landed on European shores. This is a big moment for the company and will demonstrate its ability to disrupt the market in Europe. Clearly, a major part of the future is e-bikes with e-bike sales expected to reach around 15 million units in Europe by 2030. We are confident that Hero is poised to become a market leader in this segment, making high-quality e-bikes fusing HNF’s engineering and design expertise with Hero’s manufacturing capability, especially with the 100-acre Cycle Valley in Ludhiana. Where most of our competitors are struggling with supplies, the partnership with HSC allows uninterrupted supplies for bikes and e-bikes even in this high-demand period. Since HMC is also setting up component manufacturing in-house, the dependence on external component suppliers will be reduced”
The company believes its latest batch of e-bikes to Europe overcomes the bicycle supply chain disruptions caused by the COVID-19 pandemic. While supplies dwindled and lead times for components increased manifold, consumer demand for bikes and e-bikes sky-rocketed.
HMC Group Chairman and Managing Director Pankaj M. Munjal said – “Today, the bike market in India is valued at EURO 0.8 billion with 15 million bikes a year, whereas the European market is 15 times that of India. The e-bikes market, where the growth lies, is valued at EURO 5 billion for Europe, 50 times that of India, valued at EURO 0.1 billion. With a conducive environment to thrive both in terms of infrastructure and policies, e-bikes were popular in Europe at a time the concept was in its nascence in India. Apart from a business decision, foraying into the European market was aimed at highlighting our strength – as market creators and leaders in India, we have much more to offer to the world… our vision now is to become the largest fully-integrated e-bike company in Europe.”