Chennai, Sep 26 (IANS): Electric two wheeler maker Hero Electric on Monday said it will set up a Rs 1,200 crore two million units per annum mega electric vehicle (EV) manufacturing hub in Rajasthan.

The company said it has signed a Memorandum of Understanding (MoU) with the state government at the Invest Rajasthan summit.

According to the company, the proposed unit will be located at Salarpur industrial region over 170 acres and start production by the end of of 2023.

"This mega manufacturing facility is part of our capacity enhancement to boost EV adoption across India. It will allow the state to spearhead clean mobility solution shift and promote ecological tourism practices," Naveen Munjal, Managing Director, Hero Electric, said.

CEO Sohinder Gill said: "Green field facility of this mega size and large budget gives us the opportunity to introduce very energy efficient green manufacturing processes with a healthy blend of automation using robotic arms and the nimble-fingered skills of the local artisan workforce, using the clean solar energy that state provides."

The proposed facility will manufacture all the current and upcoming Hero Electric two-wheelers, Hero Electric said.