Hero Cycles has just delivered its first electric bikes produced in India to Germany.
Now the company is expecting increasing numbers.
Hero Cycles is a huge bicycle manufacturer owned by Hero Motors, the largest motorcycle manufacturer in the world.
The Indian manufacturer’s electric bike division now has Europe and the continent’s emerging electric bike market in its sights.
Currently, the European e-bike market is dominated by many domestic electric bike manufacturers and is one of the largest outside of China.
Hero hopes to become a new leader in the European market, competing with both domestic manufacturers and low-cost imported electric bicycles from China.
The plan may be ambitious, but Hero brings a number of benefits. Electric bikes made in India are not subject to the high tariffs imposed on many Chinese electric bike companies. Hero also brings in its own massive manufacturing resources and expertise.
By 2025, Hero plans to add € 300 million in organic growth from its European operations and another € 200 million in inorganic growth, likely through mergers and acquisitions.
The move comes at a time when India is increasingly establishing itself as a major global competitor in the development and production of light electric vehicles and associated systems.
A number of interesting startups have emerged in India that produce high-tech electric scooters for the domestic market.
Lightweight electric motorcycles have also used strategic partnerships to create hugely popular electric two-wheelers. Revolt’s RV400 electric motorcycle sold out in just two hours after a new round of pre-orders opened last week.
Hero Motors has even signed an important partnership agreement with Taiwanese leader in battery-swapping electric scooters, Gogoro, to bring its battery-swapping technology and scooters to India.
Some Indian manufacturers are now considering exporting their vehicles beyond the Indian market. Ola Electric is currently building a factory that will produce 2 million electric scooters per year with a possible capacity of 10 million scooters per year. Most of these scooters are already intended for export to Europe and other Asian countries.
As China continues to experience disruptions in its supply chain and shipping, India’s significant role as a competitor in the global light electric vehicle market could lead to important changes in the industry over the next few years.
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