Hero Cycles joins hands with Yamaha, Mitsui for electric bicycles
- Published | 22 November 2018
The first product for India to roll out from this alliance would be a high-end electric-mountain bike (E-MTB), which is the same segment that has seen the fastest growth in Europe in the last year.
India: Global cycling manufacturer Hero Cycles, which recently entered into the electric bicycle segment, has entered into a strategic alliance with Yamaha Motor Co., Ltd. and Mitsui & Co., Ltd. of Japan for technology, manufacturing & marketing of Hero electric bicycle powered by Yamaha electric drive unit.
Hero Cycles have been in the news lately for their electric bicycles. The future looks bright for both Hero Cycles and electric bicycles in general thanks to their latest alliance. The Indian bicycle giant has joined hands with Yamaha Motor Company Limited, and Mitsui and Company Limited. The announcement comes in the wake of other initiatives recently announced by Hero Cycles, including the “Cycle Valley” project which is proposed to be set up in Ludhiana and serve as a hub for end-to-end supply chain of the bicycle industry. The Cycle Valley would be led by Hero Cycles as the anchor investor and will create an ecosystem of suppliers in joint ventures with global bicycle component makers.
According to BlueWeave Consulting, this venture is expected to benefit Hero Cycles’ electric bicycle projects in the form of technology, manufacturing, and marketing. Furthermore, Hero also claims that the bicycles will be powered by a Yamaha electric drive unit. The first product to emerge from this alliance will be an electric mountain bike. The partnership has been formed with a forward-looking plan which includes development of new e-mobility products jointly by Hero and Yamaha, with go-to-market sales, distribution and marketing support by Mitsui & Co Ltd. India automotive industry is at the flourishing stage, supportive government policies and high public & private sector investment in the region are booming the industry. Over the years the automotive industry will witness phenomenal growth with high investment from foreign investment companies. Increase in per capita income and rise in urban population has surged the demand for automobiles leading to higher revenue generation in the region. Prominent automotive companies are willing to enter into the market through acquisition and partnership, further government supportive policy is positively impacting the market. Companies are focusing on controlling cost, improving efficiency and utilization of alternative energy engines. Electric vehicles (EVs) are the most fuel-efficient reduces emissions and significantly lower energy costs, thus EVs are on high demand. Thus in near future, the market will witness significant growth.
According to the report by BlueWeave Consulting on “Global Electric Commercial Vehicles Market, By Propulsion, By Vehicle Type, By Component Type, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2024”, the global electric commercial vehicle is projected to grow over a CAGR of 12% during the forecast period of 2018-2024 by value. The market is expected to reach around USD 149,316 Million by 2024. The demand for electric vehicles and charging station is governed by an increase in demand for fuel-efficient, high-performance, and low-emission vehicles. In addition, the trend of reduction in vehicular emission due to stringent rules & regulations in several countries and growth of public charging infrastructure in China, India, and the other developed countries are fuelling the market growth.
According to the recently published report by BlueWeave Consulting on “Global Electric Vehicle Charging Station Market, By Product Type, By Installation Type, By Suppliers Type, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2025”, the growth is attributed to an increased deployment of charging stations at public places such as shopping malls, commercial buildings, airports, and restaurants. The convenience of being able to use an EV charger while shopping or during office hours is expected to boost the adoption of electric vehicles. Furthermore, government offerings, such as tax credits, on the installation of publicly accessible stations are expected to boost the market.