India's biggest maker of electric two-wheelers gears up as its rivals, including Hero MotoCorp, firm up an aggressive plan to turbo charge the EV market
After all these years of hard work, there is no question of letting the throne and market share slip: Naveen Munjal, managing director, Hero Electric
Image: Amit Verma
Chandni Chowk, 2001
Around noon, it started to get chaotic. Thousands of buyers paced up and down the serpentine bylanes of one of the busiest wholesale and retail markets of India. The shrill pitch of countless hawkers, the blaring of two-wheeler horns, jostling for every inch of space with rickshaw pullers, and the oppressive July heat created a perfect photo opportunity for Naveen Munjal. The budding street photographer wanted to capture the bustling energy of the street in one frame. The 29-year-old zoomed out with his camera lens, and aimed for a long shot.
The same year, in 2001, Munjal was trying his luck with another long shot. The deputy chief executive of Hero Cycles reckoned the time was right for electric bicycles. Two decades ago, the idea sounded outrageous, and the bold attempt was labelled as false bravado. For the young Munjal, the gambit made ample business sense. Electric cycles, he was convinced, could woo cycle owners who were reluctant to graduate to a scooter or motorcycle because of a steep price difference. “The gap was around ₹1,400 for a bicycle, and ₹44,000 for a bike or a scooter,” recalls Munjal, who came up with a novel plan.
A heavy lead acid battery was mounted on the carrier of a black roadster bicycle, a motor and a controller were attached and, eureka, an electric bicycle was born. The product made enough noise in the market. Munjal expected an electrifying response but, in his own words, “it was a complete failure”. The young entrepreneur was baffled. The price point, between ₹10,000 and ₹15,000, was affordable, the product provided better mobility, and it led to huge savings. But the consumer was not ready for it.
(This story appears in the 27 August, 2021 issue of Forbes India. To visit our Archives, click here.)