CHENNAI: Hero Electric, a 100 per cent subsidiary of the Hero Group, will invest around Rs 80 crore in the next three years to nearly double capacity of its electric vehicles manufacturing plant in Ludhiana and step up R&D activities.
Post expansion, the plant's capacity is expected to increase from 70,000 units to 1,30,000 units, Hero Electric Managing Director Naveen Munjal said.
The company aims to sell over 70,000 units in the electric vehicles segment, he said.
"For the expansion of the plant and to develop the R&D facility, we will be investing around Rs 80 crore," Munjal said, adding, they have also planned to set up another manufacturing unit in South India.
"We will be setting up another plant in South India and we are yet to finalise the place," he said, adding "We are focusing in R&D expansion and in educating the customer".
In addition, the company would also launch a high-speed electric vehicle by July 2008.
"We are working on it, however, the vehicle is expected to hit the market by July," he said.
Though low-speed vehicles do not require licence or registration, the high-speed vehicles do need the same.
"For high-speed vehicles, registration, licence and road tax are necessary," Munjal said.
The industry is only at nascent stage and it is an exciting product, he said, adding that the company is yet to decide the cost of the new high-speed vehicle.
Munjal said that the company would try to work on making the cost of batteries cheaper.
"Earlier, the battery of low speed electric vehicles was at Rs 3,000 but now it has gone upto Rs 7,000", he said.
"The Sealed Lead Acid (SLA) battery used in low speed electric vehicles weighs around 27 kgs. It has a capacity to recharge for 300 plus however, the cost of lead has increased and now the cost of this SLA battery has also increased", Munjal explained.
When asked due to the rise in the cost of battery, the company would increase the cost of vehicle (as these vehicles run on such batteries), Munjal said, "No, the company will not increase the cost of vehicles".
"Presently, it will not be increased, however, we are planning to work on bringing the cost of batteries cheaper" he said.
He also said that the Lithium ion battery used in high speed vehicles would cost more as it has a capacity to recharge more than 2,000 times and has a longer life as compared to SLA battery.
"Constantly, R&D has to be there and that is way for growth", Munjal said.
Recently, Hero Electric launched its products Maxi and Optima in Chennai. Both are low speed vehicles and do not require road tax or registration. The vehicles are priced around Rs 30,000.
