Hero Cycles is a large bicycle manufacturer under Hero Motors, the world’s largest motorcycle manufacturer.
The electric bicycle division of the Indian manufacturer is now setting its sights on the booming electric bicycle market on the European and African continents.
The European electric bicycle market, currently dominated by many domestic electric bicycle companies, is one of the largest markets outside of China.
Hero hopes to become a new leader in the European market, competing with domestic manufacturers and low-cost imported electric bicycles from China.
The plan may be ambitious, but Hero brings many advantages. Electric bicycles made in India are not affected by the high tariffs imposed on many Chinese electric bicycle companies. Hero also brings a lot of its own manufacturing resources and expertise.
By 2025, Hero plans to increase organic growth of 300 million euros and another 200 million euros of inorganic growth through its European operations, which may be achieved through mergers and acquisitions.
This move comes at a time when India is increasingly becoming a major global competitor in the development and production of light electric vehicles and related systems.
Many interesting start-ups have emerged in India to produce high-tech electric scooters for the domestic market.
Light electric motorcycle companies also use strategic partnerships to produce popular electric two-wheelers. Revolt’s RV400 electric motorcycle sold out only two hours after opening a new round of pre-orders last week.
Hero Motors even reached an important cooperation agreement with Gogoro, the leader of Taiwan’s battery exchange electric scooters, to bring the latter’s battery exchange technology and scooters to India.
Now, some Indian manufacturers are already considering exporting their cars outside the Indian market. Ola Electric is currently building a factory that aims to produce 2 million electric scooters per year, with a final production capacity of 10 million scooters per year. A large part of these scooters are already planned to be exported to Europe and other Asian countries.
As China continues to experience supply chain and transportation disruptions, India’s role as a major competitor in the global light electric vehicle market may cause major changes in the industry in the next few years.
Micah Toll is a personal electric car enthusiast, battery nerd, and the author of Amazon’s number one best-selling book DIY Lithium Battery, DIY Solar, and the Ultimate DIY Electric Bike Guide.