The electric two-wheeler maker, according to him, is looking to invest Rs 700 crore in the next five years to build two factories that will take its capacity to 12-13 lakh scooters. At present, it’s planning to increase its capacity from 75,000 scooters to about 3 lakh.
Electric two-wheelers were expected to see a faster adaption with a target of 10 lakh scooters by FY22, but it failed to take off due to restrictions in the FAME 2 policy. India last month, however, not only extended the scheme by two years, but also increased incentives under it. At the same time, the government is trying to lure domestic and global firms to build Tesla-like gigfactories that make millions of battery cells.
Such interventions, Munjal said, have made things a lot in favour for electric scooters, one of them being aggressive pricing.
The electric two-wheeler market is already poised for competition from new entrants and as many manufacturers, including Ather Energy, Ola, and Bajaj Auto, are stepping up investments. Ola is already working on to build a facility that will allow it to make 1 crore electric two-wheelers by next year.
Hero Electric is banking on its strong dealer network to beat competition. It’s already installing charging stations across the country, and is training roadside mechanics. So far, it has set up 1,650 charging stations and aims to take it to 20,000 in the next two-three years.
The government, however, needs to have long-term view in order to give impetus to the industry, Munjal said. It’s important to have “concrete targets” for electrification. “That will give impetus to tier 1-2 supply chain to start investing heavily into equipment and machinery.”
Also, awareness towards electric vehicles and enhanced financing, he said, need to be stepped up for the industry to grow.