New Delhi, Jul 9 (UNI) Hero Electric, a wholly-owned subsidiary of Hero Group, today said it will pump in about Rs 70 crore as part of its expansion plans that includes ramping up product range and research and development (R&D) capacity.
Welcoming the tax rebate on electric vehicles by Delhi and other state governments, Hero Electric, the country's largest manufacturer of electric two-wheelers, said the funds saved will now be utilised into upgrading and enhancing capacity at its Ludhiana plant, a statement said.
In addition to its upcoming R &D facility in Delhi, Hero Electric has also set up a Design Cell focusing on innovation that will enhance style as well as improve performance.
The Delhi government recently announced a 15 per cent subsidy on the base price of the electric vehicle (EV) and a 12.5 per cent exemption of VAT, which has reduced the ex-showroom price of electrical vehicles by 24.5 per cent.
''We welcome these initiatives...the tax benefits will give the much-needed boost to vehicles that are not only more environment friendly but also meet the need of the times,'' company Managing Director Naveen Munjal said.
He added that the company will launch a new model in the high-speed segment in August 2008.
Offering four models between Rs 15,170 and Rs 24,600, Hero Electric two-wheelers give a mileage of about 50-70 km per battery charge.
To meet increasing demand, even before the expanded plant capacity is commissioned, Mr Munjal said the company would start a second shift to increase its production to 440 vehicles per day from the current level of 220 vehicles per shift.
He said the company is targeting sales of over 70,000 vehicles this year, a more than three-fold increase from the 21,000 units sold last fiscal.
It also plans to expand its network of dealers across the country, adding almost 100 more dealers to the existing 170 by the year-end.
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