Hero MotoCorp eyes electric motorcycle debut in 2027
The country’s largest two-wheeler maker, Hero MotoCorp Ltd plans to launch its first set of electric motorcycles from 2027, becoming the second legacy mass-market two-wheeler
The country’s largest two-wheeler maker, Hero MotoCorp Ltd plans to launch its first set of electric motorcycles from 2027, becoming the second legacy mass-market two-wheeler maker after Bajaj Auto to announce entry into a segment currently dominated by new-age manufacturers. During the company’s earnings call on Friday, the management of the New Delhi-based company said the launches are being timed ahead of Delhi's proposed ban on sale of internal combustion engine or ICE two-wheelers in the national capital from April 2028. Bajaj Auto had also said during its 21 July earnings call that it plans to launch electric motorcycles in FY28. This marks a first for legacy two-wheeler makers, who have so far stayed away from entering the electric motorcycle segment, even as they work to develop the technology. The electric two-wheeler market is dominated by scooters so far, with motorcycles accounting for a minuscule share. Only Ola Electric has electric motorcycles among the top EV sellers, with market leaders TVS Motor, Bajaj Auto and Ather Energy refraining from launches in the segment.
Smaller new-age players such as Oben Electric, Matter Motor, and Ultraviolette have products in this segment. Premium motorcycle maker Royal Enfield has also launched an electric motorcycle, but is scaling up sales slowly, starting in Bengaluru. “Coming to product portfolio, way before this policy goes into effect, we will have a range of motorcycles in the market. And we are progressing well on that,” Harshavardhan Chitale, chief executive at Hero MotoCorp, who took over in January, said on a question on the upcoming Delhi EV mandate, which will only allow only electric two-wheelers sales in the city. Motorcycles key to EV growth The commentary from Hero came a day after it reported its April to June period results where it saw its revenue grow 35% to ₹13,126 crore while its net profit fell 17% to ₹1417 crore on the back of rising costs. Hero is the only two-wheeler manufacturer to register a decline in profit during the April to June period.
Following the strong results, Hero shares jumped 3.1% on Friday, against a 1.6% jump in Nifty Auto. The entry of the largest two-wheeler maker could be crucial for the electric two-wheeler market to grow, as more than two-thirds of sales in the two-wheeler industry come from motorcycles. With EVs largely limited to scooters from mainstream brands, EV penetration in the industry has remained low. According to Federation of Automobile Dealers Association (FADA) data, electric two-wheeler sales grew 22% to 1.4 million units with 6.5% penetration in the Indian market. New platforms under development Hero MotoCorp had announced at the EICMA motorshow in November last year that it now has concepts for two electric motorcycles ready. Hero’s electric business is housed under the VIDA brand which sells scooters in India. VIDA’s first global electric motorcycle, the Ubex, combines futuristic design with multi-terrain capability, the company had said. The company also noted that it has developed an electric motorcycle, Project VxZ, along with US-based Zero Motorcycles, which the Hero statement described as a leader in high-performance electric motorcycles.
The BriefWire