Hero MotoCorp, in collaboration with its US-based partner Zero Motorcycles, is nearing the completion of a mid-sized performance electric motorcycle. With the bike targeted at the premium segment, the development highlights Hero MotoCorp's focus on expanding its presence in the electric vehicle (EV) market. Additionally, the company is strengthening its electric scooter portfolio and observing promising overseas business growth, particularly in Colombia and Mexico. CEO Niranjan Gupta remains optimistic about the company’s trajectory, citing a positive economic outlook and strategic global expansion plans.

Hero MotoCorp and Zero Motorcycles: A Strategic Collaboration

Hero MotoCorp and California-based Zero Motorcycles are in the advanced stages of developing a mid-sized electric motorcycle for the performance segment.

Equity Investment: In September 2022, Hero MotoCorp’s board approved an investment of up to USD 60 million in Zero Motorcycles to strengthen the partnership.
Development Milestone: The companies announced their collaboration for premium electric bikes in 2023, and the upcoming bike will cater to the growing demand for mid-sized performance EVs.
CEO Niranjan Gupta stated in an analyst call: "We are developing in partnership with Zero Motorcycles... it’s in the advanced stage. We haven't announced the timeline yet, but the launch is not far off."

Expanding the Electric Scooter Portfolio

Hero MotoCorp is aggressively working to expand its electric scooter range to address multiple price segments within the next six months.

The company’s VIDA electric scooter range, priced between Rs 1 lakh to Rs 1.5 lakh (including state subsidies), is already gaining traction in the market.
Extensive Reach: The VIDA scooters are sold in over 230 cities and towns across India, supported by 400 sales touchpoints.
Gupta emphasized that Hero MotoCorp aims to cover most customer and price segments for EV scooters by early 2025.

PLI Compliance and Long-Term Vision

Hero MotoCorp is working to ensure that its EV products comply with the Production Linked Incentive (PLI) scheme by FY26, which could bolster profitability and incentivize further expansion in the EV space.

The company’s focus on building a robust EV portfolio underscores its commitment to sustainability and innovation in the rapidly evolving automotive landscape.

Promising Global Business Traction

Hero MotoCorp is experiencing positive momentum in international markets, with Colombia and Mexico leading the charge.

Colombia Milestone: For the first time, Colombia delivered a bottom-line turnaround, becoming both cash and EBITDA positive during the recent quarter.
Mexico’s Growth: Strong traction from Mexico is also contributing to the company’s growing overseas business.
Gupta highlighted Hero’s strategic approach: "We are disproportionately focusing on the top ten countries while nurturing others and selectively entering new markets."

Challenges in Select Markets

While Hero MotoCorp is seeing growth in several countries, Bangladesh, Turkey, and Nigeria continue to underperform. Gupta acknowledged the need for improvement in these markets and emphasized a focused strategy to address challenges.

Strategic Expansion: The company’s efforts to prioritize high-potential markets and optimize its global footprint are yielding results, but some regions still require significant interventions.

Economic and Sectoral Optimism

Gupta expressed optimism about the Indian economy and its impact on the automotive sector, citing a positive trajectory and strong demand driven by festive season momentum.

"The festive cheer will continue beyond the festive season, and we are optimistic about the economic outlook," Gupta stated. This sentiment reflects confidence in both domestic and global growth opportunities for Hero MotoCorp.