Mahindra to produce Hero Electric’s Optima, NYX electric bikes

Mahindra Group and Hero Electric on Wednesday announced their partnership in electric mobility. This collaboration is part of Hero’s growth and expansion plans. The partnership will create multiple synergies to help drive EV adoption across the country, the companies stated. As part of the deal, Mahindra will manufacture two of Hero’s electric bikes Optima and NYX at its Pitampur plant. 

With this collaboration, along with the expansion of its Ludhiana facility, Hero will be able to meet the demand of manufacturing over 1 million EVs per year by 2022. This will also enable the adoption of a cleaner mode of transport.

The contract is for a period of 5 years. The companies, in a joint statement, mentioned that the value of the transaction is expected to be in the range of Rs 140-150 crore. 

The joint development efforts will also be a key factor in the electrification of the Peugeot Motocycles’ portfolio, which is expected to bring significant value to both parties through optimisation of cost, timelines and shared knowledge. 

Naveen Munjal, MD, Hero Electric said, “This coming together of two industry leaders is to further enhance the manufacturing capabilities to meet demand and utilise Mahindra Group’s robust supply chain to reach newer centers in the country. The long-term partnership will also see both the companies make the most out of each other’s deep knowledge of EVs and drive new product development in the next few years.” 

“Peugeot Motocycles has ambitious plans in the EV mobility space in several regions of the world and particularly in Europe. This strategic partnership will bolster these efforts through joint development and a platform sharing approach leveraging the combined strengths of the two businesses. Our R&D Centre in India will be integral to this arrangement as will the manufacturing facility at Pitampur,” said Rajesh Jejurikar, Executive Director, Auto & Farm Sectors, Mahindra & Mahindra. 

The two companies said that they will create a seamless channel of communication to aid knowledge sharing among the R&D teams. This will not only further the growth of electric vehicles but also set up benchmarks for faster EV adoption, they stated. 

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