Hero Cycles Ltd, Managing Director, Pankaj Munjal has suggested that Hero Motors is gearing up for a big push towards electric vehicles in the next three years. The company is reportedly looking to invest Rs 1,500 crore to establish itself as a mainstream player in the growing EV components sector by 2026. According to the Economic Times report, Hero Motors has raised growth equity capital from a private equity firm, GEF Capital Partners and its partners for a 10 percent stake. New manufacturing plants in India and Thailand will be set up as part of the new EV venture.
Right – Pankaj Munjal, Managing Director, Hero Cycles Ltd.
As per the report, the EV components manufacturer has already started supplying EV gearboxes to high-end automakers such as BMW, Mclaren, Mercedes-Benz AMG and others. Betting on continued global demand, Munjal estimates that the market size for EV gearboxes alone is set to grow up to USD 2 billion per annum. The sector is currently growing at a CAGR of 18 percent.
The Rs 1,500 crore raised, will be utilised to set up a forging facility, disc brake manufacturing unit and building gearboxes for BMW in Thailand. Furthermore, the manufacturer will also focus on boosting its R&D in the EV space. With everything in place, Hero Motors expects up to 60 percent of its revenue, to come from the EV parts venture.
[embedded content]
2022 Jeep Grand Cherokee | Fun To Drive Like German Rivals? | TOI Auto
The report further states that HMC Group’s turnover is expected to double from Rs 5,500 crore in these 3 years and at least three HMC entities are poised to go into IPOs by mid-2024.
Source
