Hero to establish new unit
Indias Hero Group, in collaboration with Daimler AG, will be launching a light commercial vehicle in 2010. It also proposes to establish an electric scooter manufacturing facility the same year in South India as 60% of sales is coming from the region. Addressing a press conference, CEO of Hero Electric Naveen Munjal said the company was targeting to produce 70,000 electric scooters this year, while its plant capacity at Ludhiana was 1.25 lakh (125,000) units. While Ultra Motors exited from technical collaboration with Hero for making eco-friendly electric vehicles, Munjal said the world’s motorcycle major proposed to set up its own motor making unit. Munjal foresaw a 70% growth in the market this year. A hub would be opened in Hyderabad on the lines of a C&F (carrying and forwarding) agent to supply the bikes across south India. The company also will expand dealerships in Andhra Pradesh from 30 to 60 and sell 12,000 bikes this fiscal year. (May 22, 2008)