Hero Electric joins the Punjab government to invest in electric vehicle infrastructure
LUDHIANA Hero electric On Friday he announced his collaboration with the Government of Punjab to support and develop the infrastructure of electric vehicles in the state. The E2W brand will work together with the government to attract existing and potential players to invest in the state as part of their electronic mobility vision. Through this partnership, the state aims to appeal to manufacturers not only to manufacture in India, but also to manufacture in Punjab, the company said in a statement.
India’s biggest electric vehicle brand recently announced an investment of Rs 700 crore in its R&d,modelportfolio,dealernetwork,localizationanditsstate-of-the-artmanufacturingfacilityinludhiana.asapartofthispartnershipwiththepunjabgovernment,heroelectricwantstofurtherstrengthenitsroleasaleaderinthespacebyinvestinginpunjabtodevelopthestateastheevhubofindia.
The Government of Punjab has proactively encouraged electric mobility and infrastructure development with lucrative incentives and other beneficial schemes to facilitate business, which has helped the growth of the general E2W industry. Punjab offers net reimbursement of GST for seven years up to 100% of FC, employment subsidy of up to 48,000 rupees per year for five years and being one of the most well connected states in India, it also offers logistics facility, among others, what which makes it attractive to manufacturers of existing and potential electric vehicles. In addition, Punjab has strong connectivity and proximity to OEM clusters in NCR, Hariana and Rajasthan , which account for 60% of India’s total production of two-wheeler segment. This will further help in making driving down the transportation costs of the existing and new businesses.
Hero electric plans to take the 615 touch points presently to 1,000 by end of 2020 and make the brand accessible even in the most interior parts of the country. The company has aggressive investment plans in the next three years to ramp up production capacity of its electric scooters to five lakh units annually, with a focus on low-speed scooters for last mile connectivity.
Naveen Munjal, MD, Hero electric said, “When I look back, I realize that it was the right decision to set up our first plant in Ludhiana, Punjab. The state has always supported us in all our endeavors, and we have found the right partner in them. The fact that has always enabled Punjab to be ahead of other states, is the its readiness to embrace and promote e-mobility in the state and the number of incentives offered to attract investment from existing and new businesses. I am sure, Hero electric and the state of Punjab can together make a considerable difference and lead the e-mobility in the country.”