Hero Motocorp Plans To Diversify Electric Scooters In FY25

Hero Motocorp Plans To Diversify Electric Scooters In FY25

Hero Motocorp has now planned to expand its electric scooter presence in the country. It has also planned to strengthen its electric mobility segment with more launches and services, the top management of the firm told its investors, in a recent investors call.

The company is now selling two electric scooter models. “ On the scooter side, while we are selling the 2 models right now, you will see addition happening and expansion to other price segments happening by the — within — before the end of this year, calendar year. And within 6 months of that, you’ll see even further expansion going into other user segments. So we’ll have a very robust portfolio within 6 months,” Swadesh Shrivastava, Chief Business Officer-Emerging Mobility BU told investors.

The management also said that it is in the advanced stages of electric motorcycles. “As far as EV motorcycles, as we have talked about, we are developing in partnership with Zero Motorcycles. And that’s something that while we have not given out the timeline, the work is in progress. And it will be coming in the middle-weight segment. I would say it’s in the advanced stage. We haven’t announced the timeline as yet, but we would be looking at something which would not be too far off,” Niranjan Gupta, CEO of Hero Motocorp said.

“But that’s what we are working on and it will come in the performance motorcycle segment. On the scooters part of it on the EV, of course, we are expanding our portfolio,” he added. Hero Motocorp is now buoyed by the sales of its Vida Electric Scooter model. Vida’s market share stood at 6.8% by the end of June 2024.

Gupta also said that the firm has invested heavily for its EV segment. He added that the EV costs will come down.

“Last couple of years, we did heavy investments behind EV, EV costs will be coming down. The scale will be going up. The PLI benefits, Swadesh talked about FY ’26, will keep getting accrued. So we have a way of generating resources to be able to deploy behind different growth priorities. And of course, we’ll be mindful there in terms of margin guidance. But we do believe that our scale allows us to invest aggressively behind premium beyond this,” he added.