Hero Electric and M&M EV Partnership – Setting the Tone for Long Term Strategic Trend

India’s EV market is set for long term strategic trend. Recent indicator is announcement by Hero Electric and Mahindra Group, coming together for collaboration and exploring the synergies. Hero Electric, which is India’s No.1 EV company and the Mahindra Group has announced their intent to collaborate and cater to the growing demand for Electric Vehicles in the country. The partnership is strategic in nature and will create multiple synergies, helping to drive adoption of EV’s across the country.

Under the partnership, Mahindra Group will manufacture some of the most popular electric vehicles of Hero Electric’s for meeting the growing demands of the EV market. Mahindra Group will manufacture Optima & NYX models at its Pitampur plant.  Collaboration will help Hero in manufacturing over 1 million EVs per year by 2022 along with expansion of Ludhiana facility

According to Mr. Naveen Munjal, MD, Hero Electric said that Mahindra Group is leading the EV Transition in electric three and four wheelers space and collaboration will help Hero Electric in deepening its roots and strengthening its leadership in EV space. Mr Munjal said that along with creating more synergies in the near future, Hero Electric will utilise supply chain network of Mahindra Group for reaching out to newer centres in the country

For Mahindra, the Collaboration will also help in developing platform approach towards electrification of the Peugeot Motocycles’ portfolio. Collaboration will help both the partners in achieving cost optimization, and share knowledge in the dynamic and fast growing global EV environment. Mr Rajesh Jejurikar, Executive Director, Auto & Farm Sectors, Mahindra & Mahindra said, that Pitampur, facility already supplies Peugeot with EV products. Pitampur manufacturing facility along with R&D Centre in India will be key to this arrangement.  Mr Jejurikar also said that and the strategic partnership with Hero Electric will boost the joint development, enable sharing of platform and will benefit from the combined strength of both the businesses.

The partnership between Mahindra Group and Hero is noteworthy because it signals the emergence of a long-term trend in the Indian EV market. EVs are the future of mobility. Purchasing an EV may be more expensive today than purchasing a conventional automobile, however as battery and other manufacturing costs decrease in future, EVs will replace conventional passenger vehicle .

Bureau Galactik Views

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