Hero to foray into electric 3-wheelers

New Delhi: India’s leading two wheeler manufacturer Hero Group is expected to partner with UK-based Ultra Motor to foray into electric three-wheeler venture.

Currently, Ultra Motor is Hero Group’s technical collaborator in electric bicycles and scooters.

Apart from expanding its core portfolio of bicycles and two-wheelers, the $3 billion conglomerate is likely to launch the new vehicles either by the end of the year or early next year.

PTI quoted the Hero Cycles Managing Director Vijay Munjal as saying, "Currently we are testing the prototype of three-wheelers developed by Ultra Motors in Indian conditions and it will take another six months."

The group, which has so far invested about Rs 50 crore on the new facility for electric vehicles in Ludhiana, and was looking at both goods and passenger carriers.

The electric two-wheelers, which would be marketed under the brand name 'Hero Electric', come at a price range of Rs 15,000-Rs 20,000 for bikes and Rs 24,000- Rs 28,000 for scooters.

Under the technical collaboration with Ultra Motors, Hero would assemble, manufacture and service the electric vehicles, whereas the former would provide the electric vehicle technology, besides providing marketing support.

Hero plans to roll out the LEVs in North India during the first quarter of this calendar year and then gradually expand to West by Q2, South (Q3) and East and Central India in the fourth quarter.

The group, however, reported to have shown interest in entering into the four-wheeler category as well. But Munjal has declined to comment on this.

"Currently we are focusing on what we are doing and that is the electric two wheelers, which we consider has a great potential in India," Munjal said.

Ultra Motor Chairman Ian Woodcock said the company has the three-wheeler technology market-ready and it could be rolled out by late this year or early 2008.

Asked about the partnership with Hero Group for the new venture, Woodcock said, "We already have an existing relationship with them and it makes sense to extend it further."

According to an AC Neilsen Study, light electric vehicles (LEV) have the potential to touch two lakh units in 2007-08, which with awareness could jump to five lakh units by 2008-09.