Indian electric bike, motorbike and scooter manufacturer Hero Electric Vehicles plans to invest Rs 7 billion to meet what it believes will be an ‘explosive growth’ for electric two-wheelers.

The company will use the investment to increase capacity at its existing plant and set up a new manufacturing facility to support its target of increasing annual production from 75,000 units to a million within five years.

Hero EV’s research and development, marketing, and dealer network will also be ramped up and it will expand its supply chain, service network and charging stations.

“What we’re doing now is expanding our capacity from 75,000 units to about 300,000 units. While we are building this up, we’re also planning on the next facility which is going to be about a million units per year and that we believe is not very far off now. It’s going to be sooner rather than later,” Hero Electric Managing Director Naveen Munjal told news agency PTI.

The company has so far raised Rs 2.2 billion in a funding round led by Gulf Islamic Investments, but says it will go for another “much larger” funding round to meet manufacturing requirements to fulfil the anticipated exponential growth in sales.