Hero Electric and Mahindra and Mahindra (M&M) will sign a five-year contract to strengthen future areas of cooperation. During the contract period, the transaction value is expected to be between Rs 140-150 crore.

Through this partnership, M&M will use its plant in Pithampur, Madhya Pradesh, for the production of models such as Hero Electric’s Optima and NYX. In addition to the electrification of Peugeot’s motorcycle portfolio through platform sharing, there will be joint development and knowledge sharing between the two companies. M&M will also use its supply chain to help Hero Electric enter new centers in the country.

Through this partnership and the expansion of the existing Ludhiana plant, Hero Electric will be able to meet its needs to produce more than 1 million electric vehicles per year by 2022.

Naveen Munjal, Managing Director of Hero Electric said: “Hero Electric has been leading the electric two-wheeler industry in the country. To further deepen its roots and strengthen its leadership, Hero Electric has announced a partnership with Mahindra Group, which is leading the electric two-wheeler industry. Electric vehicle transformation in the tricycle and four-wheeler segment.”

Joint development work will also be a key element in developing a platform approach to help electrify Peugeot’s motorcycle portfolio. In a press release, M&M said it expects to deliver significant value to both parties by optimizing costs, timelines and sharing knowledge in this dynamic, fast-growing global EV environment.

Complete News Source : Businessline