With a vision of becoming India’s leading Electric Two Wheeler brand, Hero Ultra, collaboration between Hero Exports, an affiliate of Hero Cycles, part of the USD 3 billion Hero Group, the largest two wheeler manufacturers in the world, and Ultra Motor Company of UK, a global electric vehicle solutions company, achieved its first landmark of 10,000 unit sales.

Hero Cycles Limited had earlier in October 2006, signed a Technical Collaboration-cum-Joint Marketing Agreement with Ultra Motor Company, to produce and jointly market a range of “Hero Electric - Ultra Powered’ Electric Two Wheelers in India. Both Hero Cycles Limited and Ultra Motor Company wanted to understand the strength of the market and hence the Technical Collaboration was the first step towards entering the Indian market. In the last six months both the companies understood the strength of the market, witnessed a good response and felt it is the right time to combine resources and leverage the market potential.

Initiating the celebrations, Mr. Naveen Munjal, CEO, Hero Exports, said “We are pleased to achieve this important milestone of 10,000 customers in India. It proves that this country is ready for a new, efficient and cost effective way of personal transportation.”

Commenting on the occasion, Mr. Ian Woodcock, Chairman, Ultra Motor Company, said “India is an important market for us and offers an opportunity in Electric two wheelers. We have found a valuable partner in Hero Group in creating this new opportunity and tapping its potential. Efficiencies of both the companies in marketing and manufacturing respectively, proved to be a strong catalyst for sales and achieving the magic figure of 10,000 units. We will continue to innovate and grow with our current and future customers.”

Gracing the celebration was, Mr. Ieuan Wyn Jones, Deputy First Minister for Wales and Minister for the Economy and Transport, United Kingdom. Mr. Ieuan Wyn Jones has been instrumental in providing support and advice to help establish, grow, modernize and develop business in Wales. He is also responsible for the transport policy, including the development of an integrated transport system in Wales. Also present at the occasion were members of the Trade Commission for Wales and members of the British High Commission in India.

Hero Ultra has aggressively rolled out its exclusive dealerships across National Capital Region of Delhi, Haryana, Punjab, Rajasthan, Uttar Pradesh, Madhya Pradesh, Gujarat, Karnataka and Andhra Pradesh. The company will be achieving a landmark of 100 dealerships across India by 30th November 2007. The company is looking forward to expanding its network of exclusive dealerships and to take its overall distribution to over 150 outlets by March 08. To support this wide distribution network, the company has just unveiled its new marketing campaign.

As a result of the aggressive retail expansion and marketing efforts, Hero Ultra has already touched the magical figure of 10,000 units of sales in mid November 07. Through extensive above the line advertising and below the line activities, the company aims at selling around 20,000 units by the end of March 08, thereby achieving a top-line revenue of around USD16 million.

Electric bikes a totally new category in India, is witnessing a good growth. According to a 2006 survey conducted by AC Neilsen, the category potential of electric vehicles for 2007-08 is around 2,00,000 units and is projected to grow to 4,90,000 units in 2008-09.

The target profile of EVs include 14-18 year olds, primarily lifestyle bicycle riders, who have an aspiration to ride bikes and want to get a first feel of the throttle. The other segment that UMC is targeting at is the 24 + year olds who would convert from the ICE Scooter segment. The universal appeal of the product will be targeted at both men & women. They could be riding a petrol scooter and are looking at economy and utility. There is opportunity to convert at least 10% of the lifestyle bicycle, scooter and moped segment that is estimated to have a size of 4 million units annually, with bicycles having a share of 3 million units.

The E-Bikes and E-Scooters launched by Hero Ultra run at 1/10th of the running cost of conventional petrol driven two wheelers with a maintenance cost of 1/3rd of a conventional two-wheeler. Depending on what version of the electric two-wheeler is used, a single charge can last between 45kms to 70kms. The price of running an Electric Two Wheeler works out to be an unbelievable 10 paisa per km, which is the cost of charging the battery.

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Madhurima Chakraborty
PR PUNDIT
P 2 Hauz Khas, New Delhi 110 016
Tel: +91 11-26560415, 26513075; Fax: +91 11-26961835

Madhurima Chakraborty
PR PUNDIT
P 2 Hauz Khas, New Delhi 110 016
Tel: +91 11-26560415, 26513075; Fax: +91 11-26961835

Mobile: +91 98718 30883
E-mail : madhurima.c@prpundit.com 1 98718 30883
E-mail : madhurima.c@prpundit.com 1 98718 30883
E-mail : madhurima.c@prpundit.com