The company is developing e-bikes with Yamaha.
In order to scale up operations, Diversified group Hero Motors Company is planning to invest Rs 2,000 crore across its hospitality, auto components and bicycles businesses by the end of 2020. Rs 1,400 crore will be ploughed into Munjal Hospitality, while the remaining funds are earmarked for the automotive parts and bicycles businesses.
The company is developing e-bikes with Yamaha. It is also planning to acquire a 30% stake in a German e-bike manufacturer.
Pankaj M Munjal, Managing Director of Hero Cycles, said, "We will launch the e-bikes we are developing with Yamaha towards the middle of this year. Separately, we are also in the process of picking up stake in a German e-bike manufacturer. The final agreement should be signed this financial year. For us, the future lies in e-bikes."
"The market for e-bikes in India is currently minuscule, but holds immense potential. The venture should generate revenue of Rs 2,000 crore over the next few years," he added.