Company has accelerated product development and upgraded its sales network
MUMBAI: Hero MotoCorp is aiming for leadership in the electric two-wheeler segment by rolling out affordable models within the current fiscal year, according to CEO Niranjan Gupta. The country’s largest two-wheeler maker is also hopeful about launching its electric range in international markets.
Addressing shareholders in the company’s Annual Report for 2023-24, Gupta stated that Hero MotoCorp has a roadmap to rapidly scale its electric vehicle business. “We want to build leadership in EVs, and to do that, we will be creating a very powerful EV product portfolio, augmenting the VIDA V1 Pro that we have today,” he noted. The company plans to launch products in the mid and affordable segments this fiscal year.
Hero MotoCorp’s VIDA electric scooter range, priced between Rs 1-1.5 lakh with state subsidies, is part of this strategy. Executive Chairman Pawan Munjal highlighted that VIDA, in partnership with Ather Energy, has established India’s largest public-charging infrastructure for two-wheeler EVs. Additionally, the collaboration with Zero Motorcycle aims to develop new EV motorcycles targeting distinct customer segments, thus expanding the overall market size.
“I am particularly pleased to witness VIDA V1’s rise as one of the leading electric scooters in India, and I anticipate its future launch in global markets, where it is poised to become a significant player as well,” Munjal said. Hero MotoCorp has already expanded the presence of its VIDA electric scooters from three to over 100 cities.
“There is path-breaking innovation underway at our state-of-the-art R&D Centres at CIT Jaipur and Tech Centre Germany to create a winning portfolio in all segments,” Gupta informed shareholders. The company also plans to introduce more premium products and scale up its international, accessories, and merchandise businesses.
Gupta emphasized that while the company has a substantial scale in the domestic market, it has also embarked on a similar journey to scale up its global business with a focus on the top ten markets. “Additionally, we are tapping into opportunities to scale up our accessories and merchandise business,” he added.
On premium products, Gupta noted that last year the company launched several premium offerings, boosting its portfolio. “We will continue to launch more premium products in the coming years,” he said, outlining the company’s focus on speed, scale, synergy, and simplification. “Our premium portfolio across ICE and EV will grow exponentially, with a line-up committed to innovation,” Gupta said.
Hero MotoCorp boasts significant scale advantages, with a customer base of 116 million, over 7,500 distribution points, a supply chain capacity of 10 million units, a presence in around 50 global markets, and a workforce of more than 25,000 employees. “Leveraging this scale is key to success in everything that we do. We are adopting this scale mantra in every decision we make; our strategy is to put our might behind products and projects that can be scaled up faster,” Gupta said.
The company has accelerated product development and upgraded its sales network. “Embracing speed is crucial as we navigate rapidly changing global and consumer trends. We are now focusing on further reducing the time our products take to roll out and enhancing speed by decentralizing decision-making to the point where the actions reside,” Gupta concluded.
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