Hero Motors readies for Rs 1500 crore EV push – EQ Mag
Hero Motors, the auto components arm of the Hero Motors Company Group, is planning to invest Rs 1,500 crore over the next three years to expand its presence in the market for electric vehicle (EV) components.
The company recently raised growth equity capital from private equity firm GEF Capital Partners and its limited partners in exchange for a 10 per cent stake. The funds will be used to set up new facilities in India and Thailand.
The planned capital expenditure over the next three years will be utilised to set up a forging facility for high-end cars, a disc brakes manufacturing plant, a new facility to roll-out gearboxes for BMW in Thailand, reports Economic Times.
The company is also planning to enhance its R&D capabilities to meet demand in the EV sector.
Pankaj Munjal, chairman of HMC, expects the market for EV gearboxes to be worth $2 billion per year, with a CAGR of 18 per cent.
Hero Motors is also focusing on developing advanced automotive technology parts for electric vehicles.
The company has started supplying gearboxes to major automakers like BMW, McLaren, and AMG among others.
The company is looking to tap into the strong global demand for EV components, particularly in Western Europe and North America.
The HMC Group expects to derive nearly 60 per cent of its revenue from EV parts in the mid-term. The group’s turnover is expected to double from Rs 5,500 crore in three years.
The company is also actively transitioning its gears and transmission business towards electric vehicles by acquiring capabilities in product engineering and process engineering.
Source: PTI
