Bikes

Hero Electric reports zero dispatches in April due to the global chip crunch – ET Auto

Sohinder Gill, CEO, Hero Electric

New Delhi: Electric two-wheeler maker Hero Electric today said it had zero dispatches to dealers in April, hit by the ongoing global semiconductor shortage that led to the stoppage of production. The company experienced extreme chip shortage and supply chain constraints, Hero Electric said in a statement. This has further increased the waiting list for its customer to 60 plus days and some of the dealerships have no stock to display.

Speaking on being unable to meet the market demand, Sohinder Gill, CEO, Hero Electric, said, It’s like putting an emergency brake on a fast-moving train. Our sales were almost doubling month on month and we somehow managed with sourcing from different geographies but the war collapsed a major supply chain resulting in this disruption.”

Gill assured that the company has geared up alternate sources and would soon resume production. “Meanwhile we are using this time to enhance our plant capacity to increase our production volumes as well as revisit our systems and processes related to batteries to further reinforce the quality assurance of our bikes,” he added.

According to the EV maker, it attained a 100,000 unit sales milestone in FY22 and extends apologies to its discerning customers for delayed deliveries of their desired e2W. It will utilize this delivery gap as an opportunity to ramp up production capacity at its Ludhiana and Pitampura plants and work towards smoother supply chain flow.

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As per the partnership inked, Hero Electric will deploy 1000 electric scooters to EVIFY in the next two years. The first 50 units are already in production and will be delivered by May 2022. Additionally, Hero will be delivering 500 EVs to be deployed by EVIFY in multiple Tier 2 and Tier 3 cities by the year-end, said a media release.




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