Ultra Motor in joint marketing pact with Hero Cycles for electric two-wheelers

Ultra Motor in joint marketing pact with Hero Cycles for electric two-wheelers

Author | Sumita Patra | Friday, Jan 05,2007 9:13 AM

Ultra Motor in joint marketing pact with Hero Cycles for electric two-wheelers

Ultra Motor Company (UMC), which forayed into India recently, has entered into an agreement with Hero Cycles Ltd to jointly market the new range of electric two-wheelers in India, which was launched in the Capital on January 4.

The seven variants of e-bikes and e-scooters launched are branded as Hero Electric with the ‘Ultra Powered’ technology tag. The Hero Electric E-Bikes are priced between Rs 15,000 and Rs 20,000, while the E-Scooters are in the range of Rs 24,000 to Rs 28,000.

Being a new category both the companies have to take the marketing aspect very seriously. As part of the communication plan, the initial thrust would be on experiential marketing and as and when the distribution is in place the media activities would take place.

Elaborating on the communication plan, Deba Ghoshal, Director-Marketing, Ultra Motor, said, “It will be a three-pronged strategy. It will be a generic communication for the category as a whole, brand communication for the end user and thirdly technology differentiator for the end user.”

“It’s a communication strategy where the technology provider will front end the marketing along with the final vehicle manufacturer. It’s a unique business model,” Ghoshal added.

As part of the joint marketing effort, both Ultra Motor Company and Hero Cycles Ltd, will jointly organise road shows, mall shows, school shows and college and university shows. These activities form part of the joint experiential activity that will be undertaken shortly.

Said Ghoshal, “We feel there should be synergies in communication by investing together in marketing.”

Apart from a joint marketing agreement, UMC has got into a technical collaboration with HCL. UMC has provided the electric vehicle technology and complete Ultra ‘Power Pack’, which consists of the company’s electronic controller, specialized battery and charger. Hero Cycles is responsible for the mechanical integration and assembly, manufacturing and service of the final vehicles.

Unveiling the new brand of Hero Electric two-wheelers, Vijay Munjal, Managing Director, Hero Cycles Ltd, said, “In a market where there are 1.6 million two wheelers sold every month (including bicycles, scooters and motorbikes), these technologically advanced yet affordable electric two wheelers will definitely herald a major change in the Indian two wheeler industry.”

As far as the sales target is concerned, Ultra Motor, Managing Director, V J Prakash, said, “We expect to do around 90,000 units in the first year of our operation.”

Under the alliance, both Hero Cycles and Ultra Motor will also mutually work towards setting up a retail and service infrastructure. Plans are afoot to open extensive dealer network in 16 major cities across the country, between January 2007 and March 2008 for comprehensive service and sales experience. The first phase of rollout will be in the North Indian markets of Delhi, NCR, Ludhiana and Chandigarh. West and South India launches will follow in the second phase of the rollout plan.

Tags: e4m

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