A venture straddling joint development and manufacturing, this move is part of Hero Electric’s growth plans to cater for ever-growing EV demand in the country. To note however, Hero Electric is a separate entity from Hero Motorcorp.
The partnership will also help Mahindra build an EV portfolio for its European brand, Peugeot Motorcycles in the future.
Over a contract period of five years, the value of the transaction is expected to be Rs 140-150 crore, M&M said in an exchange filing. Hero Electric had a turnover of Rs 556 crore with a loss of Rs 40.6 crore for 9 months ending December in FY-22.
As part of the partnership, Mahindra Group will manufacture Hero Electric’s popular electric bikes – Optima & NYX at their Pithampur plant to meet the market’s growing demands.
The joint development efforts will also be critical in developing the platform approach to help electrification of the Peugeot Motocycles’ portfolio. This is expected to bring significant value to both parties through optimization of costs, timelines, and shared knowledge in this dynamic, fast growing global EV environment, the statement from the company added.
For the industry at large though, this is a move that will have players taking notice of the biggest manufacturers just getting bigger!
