Key Highlights:
- Hero Motocorp eyeing leadership in electric two-wheeler market
- Hero Motocorp to expand its EV lineup beyond Vida Series
- Zero Motorcycles to play a major role in expansion of EV lineup
- Ather & Vida to facilitate upcoming EV models
One of India’s largest two-wheel manufacturers, Hero Motocorp might be eyeing leadership in the sustainable mobility solutions with the expansion of its affordable EV lineup. As per Niranjan Gupta CEO Hero Motocorp, the indigenous automaker will be looking forward to roll-out more affordable EVs in the coming fiscal-years.
The country’s largest two-wheeler manufacturer is optimistic about launching its electric range in international markets. Their recent USD 60.0 million partnership with California-based Zero Motorcycles is expected to play a significant role in this expansion. Although the development of Hero and Zero’s first collaborative product has been delayed, this partnership will still be mutually beneficial in various ways.
Addressing shareholders in the company’s Annual Report for 2023-24, Gupta noticed that the two-wheeler major has a roadmap to scale its electric vehicle business rapidly. He also quoted “We want to build leadership in EV, and in order to do that, we will be creating a very powerful EV product portfolio, augmenting the VIDA V1 Pro that we have today”
Gupta announced that the company is poised to launch products in the mid-range and affordable segments this fiscal year. Hero MotoCorp’s VIDA electric scooters are priced between Rs 1.0-1.5 lakh, including state subsidies. Executive Chairman Pawan Munjal stated that, in collaboration with Ather Energy, VIDA has built India’s largest public charging infrastructure for two-wheeler EVs.
He further added that the partnership with Zero Motorcycles will aid in developing new EV motorcycles aimed at a unique customer segment, thus broadening the overall market size.
Pavan Munjal, Director Hero Motocorp sharing his thoughts stated ,“I am particularly pleased to witness VIDA V1’s rise as one of the leading electric scooters in India, and I anticipate its future launch in global markets, where it is poised to become a significant player as well”.
Hero MotoCorp has already expanded the presence of its EV scooter VIDA from three to over 100 cities.
Gupta highlighted that while the company has a significant presence in the domestic market, it is also focused on expanding its global business, specifically targeting the top ten markets. “we are tapping into opportunities to scale up our accessories and merchandise business,“ Gupta said. Regarding premium products, he mentioned that the company launched several premium products last year, enhancing its portfolio.
“We will keep introducing more premium products in the coming years,” he said, emphasizing the company’s focus on speed, scale, synergy, and simplification. Gupta added that their premium portfolio, both in internal combustion engine (ICE) and electric vehicles (EV), will grow significantly with a strong commitment to innovation. He also pointed out that the company benefits from a considerable scale advantage.
Elctrik Speaks:
With a customer base of 116 million, over 7,500 distribution points, a supply chain capacity of 10 million units, a presence in around 50 global markets, and a workforce of more than 25,000 employees, the two-wheeler major’s scale is unparalleled.
Leveraging this scale is key to the company’s success. Adopting a ‘scale mantra’ in every decision, their strategy focuses on quickly scaling up products and projects. The expansion of the EV lineup, along with the collaborative e-bikes from Zero and Hero, is expected to significantly increase Hero’s market share. This move will strengthen Hero’s position not only in the Indian EV sector but also globally, aligning with its strategy of international growth.
