NEW DELHI: Hero Moto, the country’s largest two-wheeler maker, has said that electrics will become 50% of the scooter market by 2030 even though leadership in the category will be like “Russian roulette” in the short term as newer and older players fight for market share.
Niranjan Gupta, CEO of the company, said that Hero will be investing Rs 1,000 crore in the EV business this year, while it plans to launch new electric scooters and motorcycles, including through its partnership with American brand ‘Zero’, in the coming years.
“We see the EV business as a marathon, and not a sprint,” Gupta said, as he spoke about the electric two-wheeler category where the leadership is currently alternating between Ola Electric and TVS and Bajaj Auto.
Currently the share of electrics in scooters is 15%, while it is five per cent in overall two-wheeler market due to near-negligible sales in motorcycles.
Hero Moto had launched electric vehicles under the ‘Vida’ brand in October 2022, but has been relatively slow in expanding sales when compared to its rivals.
Ola Electric, which started to lose steam in certain parts of 2024, still led the segment with sales of 4 lakh units, according to numbers released by dealers body FADA. TVS Motor followed with sales of 2.2 lakh, Bajaj Auto with 1.9 lakh units, and Hero Moto with 43,695 units. The silver lining for Hero has been Ather, the electric start-up where it holds majority control. Ather sold 1.26 lakh units in 2024.
Asked about leadership in the category, Gupta said that it’s too early to decide the winners. “I don’t think we should make out anything with the current numbers. Three months back there was another player which was the number one. Right before that, there was another player, now there’s another player. And this Russian roulette will continue for some more time till the category becomes sizeable. So, you start measuring the winners and losers once the category becomes sizeable… because this will keep changing, the game will keep changing.”
He said that while electrics will grow faster in scooters, it will be slow to pick in motorcycles. “In motorcycles, we estimate that the share of electrics will be around 10% by 2030. They need more power and longer range, which necessitates a bigger battery, thus making the vehicles heavier and costlier. It does become unviable at least for commuter bikes.”
Hero has also started to collaborate with Ather in areas like having a shared charging ecosystem, even while it looks at newer areas for joint initiatives. Gupta refused to divulge details, but said that “many possibilities of cooperation” are being looked into.
On motorcycles, he said that apart from the partnership with Zero, Hero is also working on its own products. “Some of them are at an advanced stage, though I cannot speak specifically about their launch as of now.”
Speaking about the broader two-wheeler market, including the conventional petrol models contribute to the majority of sales, Gupta said demand is looking up, especially in view of positive sentiments in the rural market. For Hero, share of rural stands at 53%.
