Hero Electric said limited financing options for battery-powered two-wheelers in India are dampening its growth.
Customers are seeing benefits of electric vehicles as their running costs are less than combustion engines but there's a lack of financing options, Managing Director Naveen Munjal told BloombergQuint on the sidelines of Auto Expo 2020. “Less than 5 percent of electric vehicles are getting financed right now compared with 60-65 percent of internal combustion engine.”
To be sure, Hero Electric said it did sign some financing collaborations at the auto expo but didn't disclose any further detail.
Indian and global automakers are showcasing at least two dozen battery-powered vehicles at the nation's biennial expo being held in Greater Noida. They expect the demand for electric vehicles to rise in India as the nation pushes for cleaner energy to contain pollution and reduce oil imports.
Munjal said the electric two-wheeler maker was witnessing growth because of the “noise at government level and industry level with new players jumping in”. That, he said, creates a lot of awareness.
Hero electric competes with conventional players such as TVS Motor Company Ltd. and Bajaj Auto Ltd. as well as upstarts like Ather Energy Pvt. Ltd. and Okinawa Autotech, to name a few.
Munjal, however, said Hero Electric has an edge over rivals with a network of 600 dealers and its ability to offer wide range of products.
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