Hero Electric Dealers in Dispute with Company

A dispute has erupted between Hero Electric and its dealers, leading to a protest outside the company's headquarters in Gurugram. The issue has been simmering for some time, with tensions finally boiling over into a public demonstration.

Around 200 dealers have been demanding payment of outstanding dues totalling approximately ₹500 crore. The dealers have been protesting for three days, claiming that the company has not responded to their demands. Hero Electric has responded by serving a legal notice to the dealers' association, terming their allegations "baseless".

Hero Electric has assured that it is working to resolve the ongoing issues with its dealers by the end of 2024. The company clarified that each dealer has a unique agreement based on their individual sales estimates, and although production was halted for nine months, causing delays, it has now resumed and vehicles are being dispatched. Hero Electric has committed to resolving the outstanding issues by December 2024, aiming to address the concerns of its dealers and move forward. The company's management has also stated that they are working to resolve the issues amicably, but the dealers' "irresponsible statements" have forced them to take legal action.

The dispute is not the first time Hero Electric has faced issues. The company was previously accused of defying rules under the FAME-II policy and is currently involved in a legal dispute over pending subsidies totalling over ₹550 crore since 2021.