New Delhi, Jan 4: Leading bicycle manufacturer Hero Cycles Ltd (HCL) today launched a range of electric two-wheelers in technical collaboration with UK-based Ultra Motor Co and announced plans to foray into the three-wheeler vehicle segment within the next six months.
Under the agreement, Ultra Motor has provided the electric vehicle technology consisting of motor, electronic controller, specialised battery and charger.
Hero Cycles is responsible for the mechanical integration and assembly, manufacturing and service of the final vehicles at its Ludhiana facility.
''The initial capacity of the two-wheelers at our Ludhiana facility (Mangli unit) will be one lakh per annum and the total investment will be around Rs 50 crore,'' company's Managing Director (International Marketing) Vijay Munjal told reporters here.
Regarding the company's plans to foray into the three-wheeler vehicle segment, Mr Munjal said two more additional facilities will be set up within the existing Mangli plant.
He, however, did not divulge further details.
The Hero Electric E-bikes are priced between Rs 15,000-Rs 20,000 and E-scooters are in the range of Rs 22,000-Rs 25,000.
''As per AC Nielsen survey, there is a potential of two lakh electric vehicles in 2007-08 in the top 16 towns' which would rise to five lakh units by 2008-09,'' said Ultra Motor India Pvt Ltd Managing Director V J Prakash. There is a huge two-wheeler market in India, he said adding that over three million units of lifestyle bicycles are sold every year and the numbers are increasing.
Hero Group is aiming to set up an extensive dealer network in 16 major cities across the country, between January 2007 and March 2008 for comprehensive services and sales experience.
''The first phase of rolling out these vehicles will be in the North Indian markets of Delhi, NCR, Ludhiana and Chandigarh.
West and South India launches will follow in the second phase of the roll out plan in third and fourth quarter this year,'' Mr Munjal said.
He said the company also plans to add more charging stations in the country by signing mutual agreement with battery manufacturers.
The running cost of these bikes and scooters is one-tenth of the conventional petrol driven two-wheeler with a further advantage of low maintainence costs at one-third of a conventional two-wheeler.
A single charge can last between 40 kms and 70 kms for low-end products and high-end products respectively.
Speaking on the occasion, Ultra Motor Co Chairman Ian Woodcock said, ''Our business model is to partner with the leading vehicle companies in different countries, to jointly develop and market electric vehicles specifically designed to meet the requirements of local markets.''
UNI
Under the agreement, Ultra Motor has provided the electric vehicle technology consisting of motor, electronic controller, specialised battery and charger.
Hero Cycles is responsible for the mechanical integration and assembly, manufacturing and service of the final vehicles at its Ludhiana facility.
''The initial capacity of the two-wheelers at our Ludhiana facility (Mangli unit) will be one lakh per annum and the total investment will be around Rs 50 crore,'' company's Managing Director (International Marketing) Vijay Munjal told reporters here.
Regarding the company's plans to foray into the three-wheeler vehicle segment, Mr Munjal said two more additional facilities will be set up within the existing Mangli plant.
He, however, did not divulge further details.
The Hero Electric E-bikes are priced between Rs 15,000-Rs 20,000 and E-scooters are in the range of Rs 22,000-Rs 25,000.
''As per AC Nielsen survey, there is a potential of two lakh electric vehicles in 2007-08 in the top 16 towns' which would rise to five lakh units by 2008-09,'' said Ultra Motor India Pvt Ltd Managing Director V J Prakash. There is a huge two-wheeler market in India, he said adding that over three million units of lifestyle bicycles are sold every year and the numbers are increasing.
Hero Group is aiming to set up an extensive dealer network in 16 major cities across the country, between January 2007 and March 2008 for comprehensive services and sales experience.
''The first phase of rolling out these vehicles will be in the North Indian markets of Delhi, NCR, Ludhiana and Chandigarh.
West and South India launches will follow in the second phase of the roll out plan in third and fourth quarter this year,'' Mr Munjal said.
He said the company also plans to add more charging stations in the country by signing mutual agreement with battery manufacturers.
The running cost of these bikes and scooters is one-tenth of the conventional petrol driven two-wheeler with a further advantage of low maintainence costs at one-third of a conventional two-wheeler.
A single charge can last between 40 kms and 70 kms for low-end products and high-end products respectively.
Speaking on the occasion, Ultra Motor Co Chairman Ian Woodcock said, ''Our business model is to partner with the leading vehicle companies in different countries, to jointly develop and market electric vehicles specifically designed to meet the requirements of local markets.''
UNI
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