Electric vehicle manufacturer Hero Electric partners with Mahindra & Mahindra for production and platform development in the electric vehicle sector.

Hero Electric and Mahindra Group Partner for Electric Vehicle Mobility

In a significant move towards the electric vehicle (EV) sector, Hero Electric and the Mahindra Group have announced a long-term partnership. According to the details, this collaboration aims to boost manufacturing capabilities and drive new product development in the coming years.

The partnership will see Hero Electric leveraging Mahindra Group's robust supply chain to reach new centers across India. On the other hand, Mahindra Group will manufacture Hero Electric's Optima and NYX electric models at its Pithampur plant.

The R&D Center in India will play a crucial role in this partnership arrangement. The manufacturing facility at Pithampur, which already supplies Peugeot EV products, will also be involved.

Naveen Munjal, MD of Hero Electric, expressed his excitement about the partnership, stating that it will help deepen Hero Electric's roots and strengthen its leadership in the electric two-wheeler sector. Rajesh Jejurikar, executive director of Mahindra & Mahindra Ltd., shared similar sentiments, stating that the partnership will bolster Peugeot Motocycles' ambitious plans in the EV mobility space, particularly in Europe.

The partnership will employ a joint development and platform sharing approach, leveraging the combined strengths of the two businesses. This collaboration is expected to contribute to the electrification of Peugeot Motorcycles, where M&M has a controlling stake.

The value of the transaction over a 5-year contract period is expected to be between INR 140 - 150 crores. With this partnership, Hero Electric aims to meet a demand of manufacturing over 1 million EVs a year.

It's important to note that Hero Electric is currently leading the electric two-wheeler sector in India. On the other hand, Mahindra Group is leading the EV transition in the electric three and four-wheeler space. This partnership is expected to create significant value on a mutually beneficial basis.

The potential partners for Hero Electric in developing new electric vehicles in the coming years are not specified in the available search results, nor are details on how knowledge sharing between companies will be conducted. However, with the combined expertise of both companies, it's anticipated that this partnership will lead to innovative solutions and advancements in the EV sector.

This partnership is expected to contribute to Peugeot Motocycles' efforts in the EV mobility space in several regions of the world. As both companies embark on this journey, they aim to enhance manufacturing capabilities to meet the growing demand for electric vehicles.