The automaker also continues to focus on expanding the electric vehicle business through marketing and brand-building efforts with robust margins from the ICE business.
10 Feb 2024 | 8859 Views | By Kiran Murali
With an eye on a larger pie of the electric two-wheeler market, Hero MotoCorp is set to introduce two new electric scooters at lower price points in April-June while it also continues to focus on expanding the electric vehicle business through marketing and brand-building efforts amid robust margins from the ...
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With an eye on a larger pie of the electric two-wheeler market, Hero MotoCorp is set to introduce two new electric scooters at lower price points in April-June while it also continues to focus on expanding the electric vehicle business through marketing and brand-building efforts amid robust margins from the ICE business.
In the first quarter of the next financial year, the company will launch one affordable electric scooter priced around Rs 1 lakh or less, and a second one in the mid-segment priced around Rs 1.23-1 lakh, Hero MotoCorp’s management said today in a post-earnings conference call.
Hero MotorCorp currently has only one offering in its electric vehicle portfolio under the Vida brand, which comes at an ex-showroom price of Rs 1.26 lakh. Autocar Professional had earlier reported that Hero MotoCorp is planning to expand its Vida electric scooter portfolio to four models in the next financial year, including one business-to-business product for last mile connectivity business.
“We going to play in three price points in the first quarter, which includes our affordable and the mid-segment with a very competitive offering in the market. With that in place, we see that will have the right positioning to scale up faster in FY25,” the management said.
From 2025-2026, Hero MotoCorp eyes a portfolio of six electric motorcycles under the Vida range and another four motorcycles under its alliance with Zero Motors.
Further, Hero MotoCorp is also focusing more on expanding its charging infrastructure and retail experience. Vida V1 Pro, which was launched early last year, is now available in 100 cities through 150 dealerships across three different store formats.
The company, in partnership with Ather Energy, has set up around 850 charging stations across 100 cities and is investing heavily to expand the charging infrastructure.
Hero MotoCorp's margin in the ICE business has already recovered to the pre-pandemic level. The company’s operating profit margin during the October-December quarter was at 14%, while its ICE business margin was around 16%. This gives more room for the company to spend more on the electric vehicle business through marketing and brand-building efforts. The company noted that its margin shape will allow it to fuel growth further going ahead.
“You will see the deployment of capital expenditure and operation expenditure more going towards electric vehicles, premium models. This resource allocation is key to growth,” Chief Executive Officer Niranjan Gupta added.