Hero Electric to set up plant with 2 million units-capacity in Rajasthan
India Today
The commercial production at the upcoming facility in Salarpur, Rajasthan, will commence by the end of 2023.
The country's largest electric two-wheeler manufacturer, Hero Electric, will set up a new manufacturing facility in Salarpur, Rajasthan. The company has signed a memorandum of understanding (MoU) with the Rajasthan government to set up the facility, which will be spread over 170 acres and have an annual production capacity of 2 million units.
The commercial production at the facility, which will see an investment of more than Rs 1,200 crore, will commence by the end of 2023. According to Hero Electric, the facility will be equipped with modern equipment, robotics and innovative technologies, and utilise sustainable and renewable resources like solar energy.
"Strengthening our commitment towards carbon-free mobility, we are delighted to announce our new manufacturing facility in Salarpur, Rajasthan. We are thankful to the Rajasthan government for their support in setting up our third greenfield plant that will help promote a circular economy in the Salarpur industrial area. This mega manufacturing facility is part of our capacity enhancement to boost EV adoption across India. It will allow the state to spearhead clean mobility solution shift and promote ecological tourism practices," said Naveen Munjal, Managing Director, Hero Electric.
Hero Electric already has a manufacturing facility in Ludhiana, Punjab, with an annual production capacity of 1 lakh units. In July, it started work on its second plant in the same city and it will have a production capacity of 2 lakh units per year. The company aims to raise its annual production capacity to 1 million units in the next three years.
Hero Electric Chief Executive Officer Sohinder Gill said that a greenfield facility of this mega-size and large budget gives us the opportunity to introduce very energy-efficient green manufacturing processes with a healthy blend of automation using robotic arms and the nimble-fingered skills of the local artisan workforce, using the clean solar energy that state provides.
"Rajasthan government has been very proactive and positive in promoting electric mobility along with us and we would work closely with the government to create the largest and the best electric two-wheeler manufacturing cluster in north India, that would have a complete ecosystem of ancillaries to help the overall development of the rural zones in and around Salarpur," Gill added.
All the current and upcoming Hero Electric two-wheelers will be manufactured at the Salarpur facility. The company is also looking to streamline the supply chain to achieve the expected production capacity at the facility.
