India’s largest electric two-wheeler company Hero Electric, and the Mahindra Group Wednesday announced a strategic partnership – that straddles joint development and manufacturing.
The partnership will create multiple synergies to help drive EV adoption across the country, the companies stated.
The two companies said that they will create a seamless channel of communication to aid knowledge sharing among the R&D teams.
This will be done keeping the Indian and global markets in mind that will further the growth of electric vehicles and set benchmarks for faster adoption in the industry, the joint statement added.
About deal
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 and this contract is valid for a period of 5 years.
The companies, in a joint statement, mentioned that the value of the transaction is expected to be in the range of Rs 140-150 crore.
With this collaboration, along with the expansion of its Ludhiana facility, Hero will be able to meet the demand of manufacturing over 1 million EVs per year by 2022.
Comment from Hero
Naveen Munjal, MD: “This coming together of two industry leaders is to further enhance the manufacturing capabilities to meet demand and utilise Mahindra Group’s robust supply chain to reach newer centers in the country.
The long-term partnership will also see both the companies make the most out of each other’s deep knowledge of EVs and drive new product development in the next few years.”
Comment from Mahindra
Rajesh Jejurikar, Executive Director, Auto & Farm Sectors: “Peugeot Motocycles has ambitious plans in the EV mobility space in several regions of the world and particularly in Europe.
This strategic partnership will bolster these efforts through joint development and a platform sharing approach leveraging the combined strengths of the two businesses.
Our R&D Centre in India will be integral to this arrangement as will the manufacturing facility at Pitampur.”
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