Business Daily from THE HINDU group of publications
Friday, Jan 05, 2007
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Business Daily from THE HINDU group of publications Friday, Jan 05, 2007 ePaper |
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Corporate
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Outlook Marketing - New Products & Services
Our Bureau
NEW LAUNCH: Mr Vijay Munjal (left), Managing Director, Hero Cycles Ltd, with Mr Ian Woodcock, Chairman, Ultra Motor Company, UK, at the launch of electric two-wheelers in the Capital on Thursday. - Kamal Narang
New Delhi , Jan. 4 , The $3-billion Hero Group is evaluating a foray into the electric three-wheeler segment, adding to its core portfolio of bicycles and two-wheelers. The group is expected to partner UK-based Ultra Motor, its technical collaborator in electric bicycles and scooters, in its three-wheeler venture. It is likely to launch the new vehicles either by the end of the year or early next year. "Currently we are testing the prototype of three-wheelers developed by Ultra Motors in Indian conditions and it will take another six months to finalise anything," the Hero Cycles Managing Director (international marketing), Mr Vijay Munjal, said, adding the company was looking at both goods and passenger carriers. The group, which has so far invested about Rs 50 crore in its facility for electric vehicles in Ludhiana, could expand it further for the three-wheeler venture as well. Mr Munjal, however, declined to comment on the proposed investments. The Ultra Motor Chairman, Mr Ian Woodcock, said the company has the three-wheeler technology market-ready and it could be rolled out later this year or early 2008. Asked about the partnership with Hero Group for the new venture, he said: "We already have an existing relationship with them and it makes sense to extend it further."
2-wheeler launched
The electric two-wheelers launched on Thursday are marketed under the brand name `Hero Electric,' and come at a price range of Rs 15,000-Rs 20,000 for bikes and Rs 24,000- Rs 28,000 for scooters. Under the technical collaboration with Ultra Motors, Hero would assemble, manufacture and service the electric vehicles, whereas the former would provide the electric vehicle technology, besides providing marketing support. Asked if there was a possibility of the two partners extending their relationship to four-wheelers, the Hero Corporate Services Chairman, Mr Sunil Kant Munjal, declined to comment. "Currently we are focussing on what we are doing and that is the electric two-wheelers, which we feel has great potential," Mr Munjal said. According to an AC Nielsen Study, light electric vehicles (LEV) have the potential to touch two lakh units in 2007-08, which with awareness could jump to five lakh units by 2008-09.
More Stories on : Outlook | New Products & Services | Two/Three Wheelers | Hero Honda Motors Ltd
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