Hero Moto’s Ambitious EV Plans for 2030

Hero Moto, India’s largest two-wheeler manufacturer, is making bold predictions about the future of electric scooters. The company anticipates that electric vehicles (EVs) will capture 50% of the scooter market by 2030. However, the journey to this goal is expected to be tumultuous, with intense competition among both established and new players. CEO Niranjan Gupta describes the current market dynamics as akin to “Russian roulette,” where leadership in the electric scooter segment is constantly shifting.
Investment in Electric Vehicles
Hero Moto plans to invest a substantial โน1,000 crore in its electric vehicle business this year. This investment will support the launch of new electric scooters and motorcycles, including collaborations with the American brand Zero. Gupta emphasizes that Hero views the EV sector as a long-term endeavor, stating, โWe see the EV business as a marathon, and not a sprint.โ Currently, electric scooters hold a 15% share of the market, while the overall two-wheeler market sees only a 5% share due to minimal sales in electric motorcycles.
Despite launching electric vehicles under the ‘Vida’ brand in October 2022, Hero Moto has faced challenges in expanding its sales compared to competitors. Ola Electric leads the segment with sales of 400,000 units, followed by TVS Motor and Bajaj Auto. Hero Moto’s sales stand at 43,695 units, which is significantly lower than its rivals. However, the company has a silver lining with Ather, a startup in which it holds a majority stake. Ather has sold 126,000 units in 2024, showcasing the potential for growth in the electric segment.
Market Dynamics and Competition
The electric scooter market is currently characterized by rapid changes in leadership. Gupta notes that it is premature to declare any winners or losers in this evolving landscape. He points out that market dynamics have shifted frequently, with different players taking the lead over short periods. This “Russian roulette” of market leadership is expected to continue until the electric scooter category becomes more established and sizable.
Gupta believes that while the growth of electric scooters will be swift, the adoption of electric motorcycles will be slower. He estimates that by 2030, electric motorcycles will only account for about 10% of the market. This slower growth is attributed to the need for more power and longer range in motorcycles, which requires larger and heavier batteries. Consequently, this makes electric motorcycles less viable for the commuter segment due to increased costs.
Collaborations and Future Prospects
Hero Moto is actively exploring collaborations with Ather to create a shared charging ecosystem. Gupta hinted at various possibilities for cooperation but did not disclose specific details. In addition to its partnership with Zero, Hero is also developing its own electric motorcycle products, some of which are in advanced stages of development. However, Gupta refrained from providing a timeline for their launch.
Looking at the broader two-wheeler market, which still heavily relies on conventional petrol models, Gupta noted a positive outlook. He highlighted that demand is increasing, particularly in rural areas, where Hero Moto’s market share stands at 53%. This optimism reflects a growing sentiment among consumers, which could further bolster Hero Moto’s position in the market as it navigates the transition to electric vehicles.
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