Hero MotoCorp aims to be number one Indian EV seller

Hero is targeting the top position in India’s electric two-wheeler market as it scales up its Vida business and continues to back Ather Energy. “We clearly are focusing on being number one. There we are not shy of that,” Hero MotoCorp CEO Harshavardhan Chitale told Autocar Professional at the SIAM Annual Convention in New Delhi. He added that Vida and Ather sales, taken together, have already occupied the top position during some months. Considering individual sales numbers from January to August this year, Vida is currently fourth, trailing Ather.

1. Hero currently invests in Ather Energy and Euler Motors; recently increased its Ather investment
2. Vida offers scooters with both fixed and removable batteries
3. Hero CEO says an Ather-Hero joint product may happen in future

Vida is Hero’s EV subsidiary

Company is increasing production and exploring different offerings

Hero initially differentiated the brand through removable batteries, targeting, among others, customers living in apartments without convenient access to charging. The company is now pursuing fixed-battery scooters alongside its removable-battery models. Chitale said the two configurations are attracting different sets of buyers. Fixed batteries allow Hero to offer a more competitively priced product, with the difference between the two configurations at around Rs 10,000.

Vida has gained almost 600 basis points (6 percentage points) of market share over the past year and is seeing year-on-year growth of around 100 percent, according to Chitale. Demand has prompted Hero to increase production. Chitale said EV capacity would rise by almost 50 percent this month compared with the previous month, followed by a further doubling by December. Demand for removable-battery models has remained strong despite the introduction of fixed-battery alternatives.

Ather-Hero partnership progress

Charging already integrated; joint product might happen in future

Hero’s EV strategy also includes its investment in Ather, which it has continued to support through successive fundraisings, including the most recent one of Rs 1,758 crore. For now, the two companies will continue pursuing independent product roadmaps rather than integrating their vehicle platforms. However, that could change as the market matures. Chitale said the companies discuss areas including battery-cell sourcing, software, motors and motor components. Joint sourcing could become an option, although no such arrangement is currently underway.

Charging infrastructure is already an area where both the companies are working together. Hero and Ather are part of an interoperable fast-charging initiative which, according to Chitale, now involves close to 20 companies and nearly 6,000 charging points.

Hero also has an interest in electric commercial vehicle maker Euler Motors. Chitale described Euler as potentially the “next Ather in making” and said Hero would continue supporting the company through its fundraising. The combination of Vida, Ather and Euler gives Hero exposure across electric two-wheelers and commercial vehicles as it seeks a larger share of India’s expanding EV market.

With inputs from Mukul Y Singh, Hormazd Sorabjee, Ketan Thakkar and Stephen Raj Antony