Joint product development and platform sharing between Hero Electric and Mahindra Group will also enable the electrification of the Peugeot Motorcycles portfolio
Hero Electric and Mahindra Group have announced a strategic partnership in the field of electric mobility. This partnership was forged as part of Hero Electric’s growth and expansion plans to meet the growing demand for electric vehicles in India.
As part of this joint venture, Mahindra will manufacture two of Hero Electric-Optima & NYX’s most popular electric scooters to meet the growing market demand. These two electric scooters will be manufactured at Mahindra’s Pithampur factory in Madhya Pradesh. This is the same factory where Mahindra makes their Jawa and Yezdi motorcycles.
Hero Electric-Mahindra JV: More details
This partnership will also help Hero Electric expand their existing Ludhiana facility. By expanding its manufacturing facility, Hero aims to meet demand to produce more than 1 million electric two-wheelers per year by 2022. It will further enable them to encourage the adoption of a cleaner mode of transport.
Naveen Munjal, MD, Hero Electric, has stated that the partnership between the two auto companies will improve production capacity to meet demand and use Mahindra Group’s robust supply chain to reach newer centers in the country. He further revealed that through a long-term partnership, both companies will make the most of each other’s in-depth knowledge of EVs and drive new product development in the coming years.
The primary objective of this joint venture is the production and development of a supply chain and platform sharing for electric two-wheelers. Although Mahindra does not currently make electric two-wheelers itself, it does supply and manufacture parts for e-scooters for the French brand Peugeot. The joint development efforts will be beneficial for Peugeot when it comes to platform sharing.
Developing EV-related technology for other brands
Mahindra and Hero Electric enter into a 5-year contract with the opportunity to improve the areas of cooperation in the future. The value of the transaction is expected to be in the range of Rs 140-150 crores over the contract period.
The two companies will create a seamless communication channel to help share knowledge between the R&D teams as they build new products and technologies. This will be done in view of the Indian and global markets, which will not only promote the growth of electric vehicles but also set standards for faster adoption in the industry.
The partnership between Hero Electric and Mahindra will further help the latter develop new EV-related technologies that can be further used in Mahindra’s other two-wheeler brands such as Jawa, Yezdi and most importantly, BSA. Reports of Classic Legends developing an electric motorcycle under Jawa had surfaced online a few months ago.