Hero Electric plans acquisitionsMay 13th, 2008 - 7:47 pm ICT by admin
Chennai, May 13 (IANS) Hero Electric, the wholly owned subsidiary of the Hero Group, Tuesday said the company was in acquisition talks with two Indian firms. “We are in discussions with two companies that make motors and controllers, two critical components in an electric two-wheeler,” Hero Electric managing director Naveen Munjal told IANS here Tuesday.
According to him, acquisition is part of the company’s expansion strategy for which Rs.200 million ($5 million) have been set aside.
At present, Hero Electric imports controllers, motors, batteries and battery charges for its vehicles from various countries.
“In six months’ time, we plan to make motors, controllers, chargers. Manufacturing of batteries would take around one year,” Munjal said.
Hero Electric has also initiated talks with some battery manufacturers for sourcing the batteries that would power the electric two wheelers.
Munjal said the company was also working on hybrid vehicle that would run on dual fuel-battery.
However, he shrugged off any reduction in vehicle prices even if the company started producing motors and controllers its own. “There will be improvement in performance. Once the volumes pick up, there will be economies of scale,” Munjal said.
He added that Hero would launch a high-power and high-speed battery vehicle once the model got the nod from the Automotive Research Association of India (ARAI), Pune.
Earlier, addressing the media, Munjal said Hero Electric will invest around Rs.800 million to double the production capacity at Ludhiana to over 125,000 units per annum.
The Hero Group ventured into the electric in partnership with with Ultra Motors India. However, the two companies later fell apart and are now manufacturing their models separately.
- Government approves plan to promote hybrid vehicles - Aug 29, 2012
- Hero Electric targets 75 percent growth next fiscal - Mar 15, 2009
- Hero launches hybrid concept scooter - Jan 06, 2012
- Hero Eco Group to invest Rs.500 crore in next 5 years - Dec 28, 2011
- Chinese automaker to develop electric car with US partner - Apr 26, 2012
- Hero MotoCorp to set up manufacturing plants in Africa - Mar 20, 2012
- Fifty new vehicle launches at Auto Expo 2012 - Dec 21, 2011
- Diesel cars beat hybrids in fuel efficiency - May 06, 2011
- Mahindra launches hydrogen-powered three-wheeler - Jan 09, 2012
- Hero Honda hires global brand specialist Wolff Olins - Mar 10, 2011
- Hero Motors and Magna Steyr to develop new product line - Sep 24, 2010
- New launches to dazzle visitors at Auto Expo - Jan 01, 2012
- Mahindra Group unveils electric car - Jan 07, 2012
- Excise, customs duties on large, foreign-made vehicles hiked (Lead) - Mar 16, 2012
- Italian firm Sogefi to expand capacity in India - Jul 06, 2012
Tags: acquisition talks, arai, automotive research, battery charges, battery manufacturers, chargers, critical components, dual fuel, economies of scale, expansion strategy, hero group, hybrid vehicle, ludhiana, managing director, motors india, nod, rs 200, rs 800, two wheeler, two wheelers