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Hero Electric and Mahindra Group today announced a strategic pact in the electric vehicle space. As a part of the partnership, Mahindra Group will manufacture Hero Electric’s most popular electric bikes – Optima & NYX – at their Pithampur plant, in Madhya Pradesh to meet the growing demands of the market, the companies said in a joint statement.
With this collaboration, along with the expansion of its existing Ludhiana facility, Hero will be able to meet its demand of manufacturing over 1 million EVs per year by 2022.
“To further deepen its roots and strengthen the 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,” said Hero Electric MD Naveen Munjal.
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, he added. “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,” Munjal said.
As part of this joint venture, the two companies will also jointly produce and develop supply chain and share platform for electric two-wheelers.
The joint venture will also work towards electrification of Mahindra-owned Peugeot Motocycles’ portfolio.
The strategic partnership between Hero Electric and Mahindra Group is worth around Rs 150 crore and will continue for the next five years.
The R&D centre in India will be integral to this arrangement as will the manufacturing facility at Pitampur that already supplies Peugeot with EV products, Rajesh Jejurikar, Executive Director, Auto and Farm sectors, M&M said.