“There were constraints in the availability of semiconductors, which have now eased. Momentum in the market is good. We will close this fiscal with sales of about 100,000 units and aim to grow by 1.7-2.2 times in the next financial year,” Munjal, who is the managing director (MD) at Hero Electric, told ET.
While there may be some hurdles in the short term with work in progress on the development of charging infrastructure and smoothening finance availability for purchase of electric vehicles, Munjal said that the long-term growth prospects in the segment still remained robust. Electric two-wheelers are likely to account for almost 30% of two-wheeler sales in the country by 2025 and 50% by 2027, as per the company’s internal estimates. Munjal said: “We factor in the base case scenario while building our business plans. Whether cell prices reduce or not, incentives (under Faster Adoption and Manufacturing of Electric Vehicles, or FAME) are extended beyond March 2024, the total cost of ownership of electric two-wheelers itself is such now that it will drive adoption.”
Munjal spoke to ET on the sidelines of the launch of three new versions of its electric scooters, priced from ₹85,000 to ₹1,30,000. Hero Electric can make 100,000-120,000 a year at its facility in Ludhiana.