Hero Electric clocks zero deliveries in April amid chip shortage; CEO Sohinder Gill apologises

“This has further increased the waiting list for its customer to 60-plus days and some of the dealerships have no stock to display,” the company said in a statement.

Hero Electric CEO Sohinder Gill apologised to customers for the delay and cited the Russia-Ukraine war as the reason for the chip shortage.

“It’s like putting an emergency brake on a fast-moving train,” said Gill. “Our sales were almost doubling month on month and we somehow managed with sourcing from different geographies but the war collapsed a major supply chain, resulting in this disruption.”

Gill said the company has found alternative sources and will resume production soon. Meanwhile, the company said it is using the time to enhance its plant capacity and revisit “systems and processes related to batteries to further reinforce the quality assurance” of its bikes.

The company’s announcement comes at a time when the EV companies have come under increasing scrutiny after more than two dozen vehicles caught fire in recent weeks. Some manufacturers — Ola Electric, Pure EV and Okinawa — have said that they will recall over 7,000 two-wheelers combined after transport minister Nitin Gadkari warned companies of penalties if they are found to have been negligent.

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Hero Electric’s inability to deliver in April could also cause Ola Electric to overtake it on EV sales for the first time.

Last month, Hero Electric sold around 13,000 EVs, while Ola Electric sold around 9,000.