Mahindra collaborates with Hero Electric to manufacture electric two-wheelers
The deal is for a five-year term. In a joint statement, the firms stated that the transaction's value is likely to be in the range of Rs 140-150 crore.
FollowMahindra Group and Hero Electric launched an electric transportation cooperation on Wednesday. This partnership is part of Hero's ambitions for development and expansion. According to the corporations, the collaboration will provide several synergies to assist push EV adoption across the country. Mahindra will produce two of Hero's electric bikes, the Optima and the NYX, at its Pitampur facility as part of the agreement.
The Hero will satisfy the demand for over 1 million EVs per year by 2022 thanks to this agreement and the development of its Ludhiana factory. This will also allow for adopting a more environmentally-friendly form of transportation. The deal is for a five-year term. In a joint statement, the firms stated that the transaction's value is likely to be in the range of Rs 140-150 crore.
The collaborative development efforts will also play an essential role in the electrification of Peugeot Motorcycles portfolio, which is projected to deliver considerable value to both parties through cost, timing, and shared knowledge optimisation. As part of the agreement, Mahindra Group will produce Hero Electric's most popular electric motorcycles – the Optima and NYX – in their Pitampur facility to suit the market's growing demand. This partnership, as well as the development of their current Ludhiana factory.
The two organisations stated that they would establish a continuous communication channel to facilitate information exchange among R&D teams. This will not only accelerate the rise of electric vehicles but will also establish benchmarks for speedier EV adoption, they added.
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Speaking about the news, Naveen Munjal, MD of Hero Electric, stated that Hero Electric has been dominating the country's electric two-wheeler market. Hero Electric has announced a cooperation with the Mahindra Group, which is leading the EV transition in the electric three and four-wheeler industry, to deepen its roots and reinforce its leadership. According to the announcement, the long-term relationship would also see both firms make the most of each other's profound understanding of EVs and drive new product development in the coming years.
