Hero Moto’s Vision for Electric Scooters by 2030
Hero Moto, India’s largest two-wheeler manufacturer, is making bold predictions about the future of electric scooters. The company believes that by 2030, electric vehicles (EVs) will account for 50% of the scooter market. However, the journey to reach this milestone is expected to be tumultuous, likened to “Russian roulette,” as both established and new players vie for market dominance. CEO Niranjan Gupta has outlined the company’s strategy, emphasizing a long-term commitment to the EV sector.
Investment in Electric Vehicles
Hero Moto plans to invest a substantial ₹1,000 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 stated, “We see the EV business as a marathon, and not a sprint.” This perspective highlights the company’s understanding that building a successful EV portfolio will take time and sustained effort.
Currently, electric scooters hold a 15% share of the market, while the overall two-wheeler segment sees a mere 5% due to low sales in electric motorcycles. Hero Moto launched its electric vehicle line under the ‘Vida’ brand in October 2022. However, its sales growth has been slower compared to competitors. In 2024, Ola Electric led the segment with sales of 400,000 units, while Hero Moto managed only 43,695 units. The company recognizes the need to accelerate its growth in this competitive landscape.
The Competitive Landscape
The electric scooter market is rapidly evolving, with various players constantly shifting positions. Gupta noted that the current sales figures should not be overly scrutinized, as the market dynamics are in flux. “Three months back, there was another player which was number one. Right before that, there was another player,” he explained. This constant change creates a challenging environment for companies trying to establish themselves.
Hero Moto’s silver lining comes from its majority stake in Ather, an electric startup that sold 126,000 units in 2024. This partnership allows Hero to leverage Ather’s expertise and market presence. Gupta emphasized that the competition will continue to evolve until the electric scooter category becomes more substantial. Only then can companies begin to assess their positions as winners or losers in the market.
Future of Electric Motorcycles
While electric scooters are expected to grow rapidly, the transition to electric motorcycles will be slower. Gupta predicts that by 2030, electric motorcycles will only account for about 10% of the market. This is due to the higher power and range requirements of motorcycles, which necessitate larger batteries. Larger batteries make the vehicles heavier and more expensive, making them less viable for the commuter segment.
Hero Moto is actively collaborating with Ather to develop a shared charging ecosystem and explore new joint initiatives. Gupta hinted at several possibilities for cooperation, although he did not disclose specific details. In addition to its partnership with Zero, Hero Moto is also working on developing its own electric motorcycle products, some of which are reportedly at an advanced stage of development.
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