Hero Cycles eyes investing Rs 1,000 crore in e-cycles biz
Hero Cycles is looking at investing around Rs 1,000 crore to strengthen its e-cycles business. The capital will be used to boost global design and R&D and to set up a manufacturing unit.
Some part of the investment might also be utilized to build a strong retail distribution network.
In recent times, Hero Cycles has collaborated with Japan’s Yamaha Motor Co Ltd to unveil the 'Lectro E-cycle powered by Yamaha', India’s first center motor E-cycle. Priced at Rs 1.35 lakh, Lectro targets adventure e-cycling in India.
Aditya Munjal, Director of Firefox Cycles Limited and Hexi, said, “The premium product is the first outcome of the three-way strategic partnership formed last year between Hero Cycles Ltd, Yamaha Motor Co Ltd and Mitsui & Co Ltd. The alliance, brought together by Mitsui & Co Ltd, is aimed at creating technologically superior high-performance products through collaboration between Hero Cycles and Yamaha Motor's electric drive units, with go-to-market sales, distribution & marketing support by Mitsui & Co Ltd.”
Hero Cycles aims to sell around 45,000 units of Lectro this year, with around 50% to be exported to the UK and EU. The company will be using its already existing distribution network through UK-based Avocet Sports to export and sell Lectro in Britain and the EU. In the domestic market, Hero’s main target is metros and urban markets.
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