Hero Electric managing director Naveen Munjal: Hero Electric MD Naveen Munjal said the market for electric vehicles could be bigger than the internal combustion engine industry, as they do business in the low speed market. He said this in an interview given to Moneycontrol. On this occasion, he also talked about the changing nature of electric two-wheeler space, market projections and the future of EV startups.
Most of the commuter segments are turning to EVs
On the question of e-scooters grabbing the market in the commuter motorcycle segment, Munjal said that even though a small number of people in the motorcycle segment are turning to electric at present, it has already started. He said, when a customer buys an EV, a detailed analysis is done on who is riding it, what is his profile and who in the family is going to use it. He said, “We want to know why people are turning to e-scooters. In most cases, it is people from the commuter segment. They already have an ICE (Internal Combustion Engine) and are turning to electric.” Overall, the market for electric could be bigger than that of ICE. ICE engine means petrol-diesel powered vehicles.
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Munjal told the math of saving from EV
Munjal said, our best selling scooter Optima is priced at Rs 65,000 with a speed of 45 kmph. Its starting price is less than the 100 cc ICE engine. Looking at the cost of commuting, an ICE engine will cost one liter of petrol for 40-50 km/day running and will cost Rs 106. At the same time, 1.5 units of electricity will be spent in electric and it will cost Rs 12. Imagine saving Rs 94 per day and running it for 3 years how much will be saved.
Preparation is on to meet the increasing demand
Munjal said that Hero Electric has been able to capture a major share of the market in 2021. “With the recent partnership with Mahindra & Mahindra, the country’s largest electric two wheeler manufacturer is gearing up to meet the growing demand,” he added.
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EVs have the potential to outperform the ICE industry
When asked about the efforts of many brands and many new startups to increase the volume, he said, the level of production in the next 8-9 years is yet to be seen. So, it doesn’t matter what estimate you are working on. He said, “No one knows what the production capacity will be at that time. However, the market has great potential to become larger than the ICE industry, as the electric space is focused on the low-speed market, which is currently not accessible to the ICE automotive sector.”
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