end of the marriage:
Hero Group of India and Ultra Motors of UK have agreed to depart ways today. Hero – Ultra which is currently selling ebikes and escooters duo is one of the prominent player in the electric vehicle (EV) segment with 20% market share. In October 2007 Hero Exports Private Limited has entered into a Joint Venture with Ultra Motor Company (UMC) formed a joint venture called Hero Ultra private limited and proposed aggressive plans to make and sell electrc bikes in india. Earlier in October 2006, Hero Cycles Limited had signed a technical collaboration-cum-joint marketing agreement with Ultra Motor Company, to produce and jointly market the current range of ”Hero Electric Ultra Powered” electric two wheelers in India. With the today’s divorce both these agreements are off.
The reason behind the divorce is believed to be difference in aggression level between the partners. “Our vision did not match with that of the Hero Group. We wanted to expand at a much faster pace. The congestion in cities creates a natural market for electric two-wheelers. Now, we have our own plans which is to invest Rs 150 crore over the next three years” Ultra Motor chairman Joe Santana said. Ultra Motors is planning to come up with a electric bike that might challenge the splendours and passions of Hero Honda and that is also seen as the reason behind the rift. We plan to introduce it in India by the next fiscal. It will be powerful enough to compete with a 100 cc motorcycle or Bajaj Pulsar,” said Bowman CEO Ultra Motors said.
However the duo will continue to offer service support to the existing customers.