Electric Vehicles

Hero Electric to offer lease finance solutions for its E2W range

Written by Akhil Dalvi

One of India’s renowned electric two-wheeler brands, Hero Electric, has announced its partnership with the alternative investment platform, Grip. The investment marketplace provides retail investors with options to co-invest and obtain partial ownership in physical assets that earn lease income. Via this partnership, Hero Electric aims to expand its B2B narrative and promote the adoption of EVs by leasing them. Hero Electric aims to source 20,000 Nyx e-scooters via Grip for last-mile deliveries, logistics, and other e-commerce players in 2022.

Reasons behind the partnership

Hero Electric states that the fleet electrification business has been on its key conversations that’s being driven by the Government. This will help neutralise carbon emissions across the country as delivery and e-commerce sectors grow at an exponential rate. The electric two-wheeler manufacturer also aims to support India’s electrification drive and promote the transition of conventional two-wheeler owners towards EVs. Its partnership with Grip highlights its vision of offering eco-friendly mobility solutions and the advantages of adopting EVs for savings.

Meanwhile, Grip states that lease financing in India holds many benefits for upcoming yet promising businesses but with low penetration. Leasing products across the country is low due to the unprecedented capital crunch and other challenges caused by the pandemic. The investment platform will allow promising businesses to leverage lease financing and access alternate forms of capital across the country. Both companies will work together to catalyse emission-free mobility and reduce dependence on non-renewable resources by focussing on electric mobility.

Other News 

During the month of February, Hero Electric announced its 5-year partnership with Mahindra by rolling out its first electric two-wheeler. The brand will produce and manufacture the Optima and Nyx electric scooters at Mahindra’s Pithampur plant in Madhya Pradesh. Hero Electric has previously mentioned its plans of producing around 1 million units of its electric two-wheelers per year.

Additionally, it also formed a partnership with 24/7 roadside assistance company ReadyAssist to train and upskill 20,000 mechanics. Hero Electric will ensure to train and develop the skills of the mechanics for EV servicing under its PGO initiative. This will allow it to move one step closer towards fulfilling its vision of building a robust EV ecosystem.

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