Hero MotoCorp announces plans to accelerate transition from ICEs to electric mobility
Hero MotoCorp, India’s largest two-wheeler manufacturer, has announced plans to accelerate the pace of its transition from traditional internal combustion engines (ICEs) to electric mobility. Pawan Munjal, chairman & chief executive officer (CEO) of Hero Motocorp, said that his company was aggressively working towards multiple electric vehicle (EV) programs and platforms. He stressed that EVs would be the future of the mobility, and it must be imagined today so that it could be delivered tomorrow. He further stressed that the two-wheeler manufacturer has already started investing in EV projects, proving that it is really serious about its transition to electric mobility.
Sharing Hero MotoCorp.’s annual report for 2020-21, the top executive also revealed that the manufacturer is planning to go beyond two-wheelers with special focus on electric and modular mobility solutions. The company’s new vision, called 'Be the future of mobility', is encouraging it to work on multiple strategies to ensure sustainable growth in an age of disruptions by venturing into new areas of mobility, even beyond two-wheelers. It is exploring new business models like ‘battery as a service’ and ‘vehicle as a service’ to create a new revenue stream of revenue.
Announcing the company’s plans, Mr. Munjal said, “The future will have to be imagined today, so it can be delivered tomorrow. As I have often said, we are aggressively working towards multiple electric vehicle (EV) programs and platforms and also on various other modular mobility solutions. Sustainability remains critical to our ethos and we will continue to work in line with these principles.”
Earlier this year, the two-wheeler manufacturer signed a commercial partnership deal with Gogoro Inc. – a Taiwan-based operator of battery swapping network. The signing of the partnership deal with the Taiwanese company dropped a clear hint about Hero MotoCorp.’s EV aspirations.
In addition to partnering with Gogoro, Hero MotoCorp has also acquired a significant stake in EV startup Ather Energy. This partnership will clearly pave way for the company to become a market leader in the EV space.
The Indian manufacturer also partnered with Harley Davidson, in a deal that is being seen as an important stepping stone in the direction of “Premiumisation” of the company’s brand and products.
The deals with various foreign brands will also help the Indian manufacturer in strengthening its focus on the premium two-wheelers, like high-end motorcycles and scooters, in foreign markets like Nepal, Bangladesh, Africa, and Latin America.