Hero MotoCorp charges up electric vehicle play, Energy News, ET EnergyWorld

Hero MotoCorp, which has long ruled the Indian roads with its internal combustion engine motorcycles, is looking to challenge the market share of Ola Electric, TVS Motor Company and Ampere in the country’s fast-evolving electric two-wheeler segment.

The company has commenced work on fast-tracking production and sales of Vida V1 – the first premium electric scooter it launched in December – by extending its distribution to 100 cities by the end of the ongoing financial year, against 10 planned earlier. It is also working on introducing two more electric scooters at the mass end of the market to build volumes in the next 18 months.

“We are doubling down our efforts to build leadership in EVs (electric vehicles). We had introduced Vida V1 in three cities in December to gauge customer feedback. Now we are fast-tracking our reach and will be in 100 cities by March, instead of the 10 planned earlier,” Niranjan Gupta, the new chief executive officer at the country’s largest two-wheeler maker, told ET. “After that, over the next four quarters we will seed products in the middle and bottom segments.”

Gupta said “speed will be the name of the game” as the company goes ahead with its expansion plans. He said that while Hero MotoCorp plans to spend ₹1,000-₹1,500 crore every year in capital expenditure, the resources will be disproportionately focused on building leadership in EVs and expanding the company’s share in the premium segment.

To accelerate sales, in addition to the exclusive centres initially planned for sale of products under emerging mobility brand Vida, Hero MotoCorp is planning to upgrade 30 per cent-40 per cent of 1,000-odd primary dealers to retail EVs and premium products.

“Over the next 5-7 years, the transition to electric will happen rapidly in scooters,” Gupta said. “We have built our capacity in a modular fashion and can move quickly to tap into the potential. We would not need to put capex ahead of time (like new entrants) to expand our footprint in EVs.”

Apart from the products built in-house, Hero MotoCorp has also inked an agreement with California-based Zero Motorcycles to develop electric motorcycles. The company is also the largest shareholder in Ather Energy. Both these collaborations are intended to give the Hero MotoCorp higher combined share and technological edge over rivals.

  • Published On Jun 8, 2023 at 08:21 AM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETEnergyworld App

  • Get Realtime updates
  • Save your favourite articles

Scan to download App