Sohinder Gill (SG):
Tell us something about the origins of Hero Electric.
This started in 2007 when Ultra Motors of the UK were trying to enter the Indian market. They chose to partner with us (Hero MotoCorp) as they were looking for a leading player in motorcycles and they wanted to be the best in the world. They hoped to capture the market along with us, using their technology and our manufacturing facilities. We soon realised, though, that they were borrowing the technology and did not have any innovative home-grown technology. We tried to work with them for one year, but for these reasons, we ultimately decided not to proceed with the venture.
We reckoned that we were much better when it came to basic R&D on our own. So in 2008, we formally severed the arrangement and decided to enter the electric two-wheeler space on our own.
We had already done some relevant R&D in the past as one of the Munjal brothers had been pushing for electrification of bicycles. Thus we did not take much time to develop a product and our first model hit the market in late 2008.
Currently, how many models of Hero electric scooters are on sale?
We currently sell five models of electric scooters, plus two models of the Avior electric bicycle.
SG:
How have your sales been? I cannot disclose numbers. In terms of market share, we have more than 50 per cent. However, the market size itself is very small. We have been looking forward to the announcement of the electric vehicle policy, which will be in force from 1 April 2015 onwards. The policy will be a turning point for the industry.
SG:
How would you attract a prospective customer to purchase an electric scooter?
As compared to petrol scooters, there are two upsides and two downsides (assuming price parity). The downsides are range anxiety and top speed, that is, in the same price range, you cannot hope to sell an electric scooter with a top speed of 120 km/h and a range of 100 km — you would need to double or triple the price, and the only batteries you could use would be lithium batteries.
SG: