Hero MotoCorp looks to scale up EV biz, lines up new models

PTI, Nov 6, 2024, 6:26 PM IST

Milan (Italy): Hero MotoCorp is looking to scale up its presence in the electric two-wheeler space as it gears up to introduce affordable models over the next few months, according to a top company executive.

The two-wheeler major is also looking to bolster its presence in Europe as it looks to enter markets like the UK, France, Spain and Italy next year.

“In the next six months, there will be a lot of action in the product portfolio (in the EV space). We will be launching products (under VIDA range) in the more affordable segments as well,” Hero MotoCorp CEO Niranjan Gupta told PTI in an interaction here on the sidelines of EICMA.

Hero MotoCorp’s VIDA electric scooter range is currently priced between Rs 1-1.5 lakh, including state subsidies, in India.

The company currently sells the VIDA range in over 230 cities and towns in the country, with over 400 sales touchpoints.

Gupta noted that the company has done well in the electric segment, having sold 11,600 units in the just concluded 32-day festive period.

Emphasising the importance of having a physical sales and service infrastructure on the ground, he noted that it helps in gaining customer trust.

“There’s a physicality to customer service that is required. I think, as Hero, we are into every nook and corner of the country, and therefore, we have an advantage there,” Gupta said.

He also noted that being cost-competitive also works out in the company’s favour.

“So, I would say cost and customer service is the differentiator between winners and losers in the long run (EV space),” he added.

When asked about the overall sales scenario in the domestic market, he said urban centres were doing better, and now rural areas have also started to pick up pace.

“So, I would say that there’s a positive momentum that can come up from the rural market as you move forward. We do know that the monsoon has been good. We do know that the government has increased the MSP… So, I think all of these, in the fullness of time, will percolate down in terms of income at the bottom of the pyramid and the employment,” Gupta said.

“So, we are seeing green shoots, and therefore, moving forward, we do see positive momentum coming back.” Earlier this week, Hero MotoCorp reported a 13 per cent rise in sales during the festive period in India this year at 15.98 lakh units compared to the year-ago period.

The company achieved its highest-ever retail sales during the 32-day festive period, starting from Navratri.

On Tuesday, the company announced plans to enter countries like the UK, Italy, Spain and France in the second half of 2025.

The New Delhi-headquartered two-wheeler major currently sells its products in 48 countries across Asia, Africa, and Latin America.

Gupta said the company can offer aspirational products at affordable prices in these markets.

The company plans to enter the European markets, riding on a new electric scooter – VIDA Z.

It also plans to expand its range to high-capacity premium internal combustion engine (ICE) motorcycles.

“We know that because of the economy the way it is, there are lots of customers in Europe and the UK who are looking at value, who are looking at price, value equation now, and that’s where we come in,” he noted.

The company has already signed up exclusive distributors who know these markets well, Gupta stated.

“So we will be starting with Italy, Spain, France and the UK. And then later on, we will see if we could move into more markets,” he added.

Gupta said that sales performance has started to pick up across various markets.

“Colombia has started doing very well. Now, in fact, we would be very close to a bottom line turnaround in Colombia and also witnessing market share gains there,” he stated.

Besides, the company would focus on scaling up business in Brazil and Southeast Asia, he said.