Why did India’s largest EV maker not ship a single scooter in April?


Hero Electric, the country’s largest electric vehicle maker by sales, has announced that it has not shipped a single electric vehicle in the month of April. The company has attributed this shocking figure to the extreme shortage of semiconductors in the country.

According to PTI, the company is facing severe shortage of chipsets as well as supply chain restrictions. Hero Electric also pointed out that the issue is not limited to their company alone. Other automobile brands in the country are also facing a similar plight. The ongoing global chip shortage has caused many automobile companies to either drastically reduce their production or even stop production altogether.

impact on customers

This is directly affecting the customers who have booked Hero Electric two-wheelers. The waiting period can go up to more than 60 days. The situation is so dire that some dealerships do not even have vehicles to display at their outlets.

Hero Electric CEO Sohinder Gill likened the situation to a speeding train that had to apply emergency brakes. He claimed that the company is almost doubling its sales month-on-month. The company was managing to meet the demand till now. However, the Russo-Ukrainian War has forced them to stop. Gill claims that the cause of the war has been a major supply chain detail.

forward position

The situation is not entirely bleak. The company has found alternative sources and is hoping to resume production soon. They also plan to increase the production capacity of their facilities.

Additionally, in view of the recent fire incidents, Hero Electric will also review its systems and processes for battery safety and to ensure better quality.

Several new EV companies are under investigation for major fire accidents, some of which have even taken lives. Three companies have decided to voluntarily recall after their vehicles caught fire without any indication of any external stimulus. Ola Electric, Okinawa Autotech and Pure EV have collectively recalled around 7000 scooters in India.

The Indian government is also increasing its vigil. Union Minister Nitin Gadkari expressed serious concern over the increasing incidents of fire. He also announced that any company found guilty of these accidents would be punished.

The post is the reason why India’s largest EV maker didn’t ship a single scooter in April, which first appeared on BGR India.

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