Hero Motors Company (HMC) will set up a new plant in Cycle Valley in Punjab at an investment of ₹250 crore. The new plant is expected to commence operations in 2019.
The Punjab government has allocated 100 acres for the valley that will bring together cycle and its components producers.
HMC will also partner with Japanese, Germans and Taiwanese e-bike component manufacturers in the next six months for their new plant. According to a company official, the idea is to export e-bikes from India.
The company will also be launching its first e-bike Lectro EZephyr with integrated battery in India in September. The company is looking to produce 4,000 units of EZephyr bikes by September and 8,000 units by January 2019 from its existing facility in Ludhiana and Ghaziabad. Hero Cycles has five manufacturing units in Ludhiana, Ghaziabad, Bihta (in Bihar), Sri Lanka and Manchester in the UK.
There are plans under way to launch 10 e-bike models catering to different segments. HMC’s UK subsidiary, Avocet, is also planning to launch these new models in September, according to a press release.
EZephyr is an electrically pedal-assisted cycle that is light enough to be carried by an ordinary individual. It has an aerodynamic design made of light but durable alloy. They are thinner, more convenient and safer to ride, with a running cost of around ₹5 for every 100 km.
“Globally, the e-bike market is set to touch $21.3 billion by 2023 and there is every sign of e-bike culture growing in India too,” said Pankaj M Munjal, Chairman, HMC, in the press release. “We will cater to various segments that currently uses internal combustion engine to move. We have the ability to quickly scale up production to a million bikes if needed with capacity already touching 6 million at four of our plants,” Munjal added.