Hero Cycles Ltd, the world’s largest maker of cycles, is now foraying into the electric vehicle (EV) space under the brand Lectro. The company has earmarked Rs 1,000 crore for its e-cycle venture.

“While electric cars don’t solve the problem of congestion and e-bikes face charging infrastructure issues, Hero Cycles has a solution to both the problems. in the form of electric bicycles. If one loses battery charge, he or she can always pedal back easily with gear shifts, unlike a scooter or a car. E-cycles are affordable with prices starting from Rs 20,000,” Pankaj Munjal, chairman and managing director of Hero Motors Company, told The Telegraph. Hero Cycles Ltd is a part of Hero Motors.

The Lectro range includes routine commuting bicycles to premium high-performance models. The EHX 20, with a price tag of Rs 1.3 lakh, is at the top bracket of the portfolio.

“The premium cycles are aimed at a small yet growing community of adventure lovers and mountain cyclists who love pushing the limits of performance. E-biking is a social need getting fulfilled. In Europe, e-cycles have been showing a trend of 20 per cent year-on-year growth for 10 years,” said Munjal.

Hero Cycles is also betting big on customised e-cycles for small and large businesses. “Custom bikes for food delivery may turn out to be a huge vertical in the time to come,” said the MD.

Speaking about the contribution of e-cycles to Hero’s annual sales volume, Munjal said: “It’s huge. By value, we will add around Rs 2,000 crore in 12 quarters.”

On investments, the chairman shared: “We have kept Rs 1,000 crore aside for the EV business. There is a phased investment plan directed towards strengthening the global design and R&D along with a manufacturing unit. A part of the investment may also be earmarked to build a strong retail distribution network.”

The company’s market share has grown to 40 per cent from 34 per cent last year despite the downturn, thanks to product diversification and expansion in premium products, Munjal added.