homeauto NewsHero MotoCorp to invest up to Rs 1,500 crore for developing premium bikes and EVs in India
Hero MotoCorp to invest up to Rs 1,500 crore for developing premium bikes and EVs in India
Hero MotoCorp, one of India's leading 2-wheeler players, plans to launch the highest number of premium bikes in FY24 and revamp over 500 stores. Urging industry observers not to judge the future of the EV market solely based on its current leader, CEO Niranjan Gupta unveiled several other upcoming programmes in this chat with CNBC TV18.
Hero MotoCorp, one of India's leading two-wheeler manufacturers, is set to make significant investments in the premium and electric vehicle (EV) segments. A majority of the company's Rs 1,500 crore capex will be directed toward the development of premium motorcycles and EVs, Hero MotoCorp CEO Niranjan Gupta said in a conversation with CNBC TV18. This move aligns with the changing framework around EVs, as Gupta believes that the landscape will undergo dramatic transformations within the next 2-3 years.
Gupta urges industry observers not to judge the future of the EV market solely based on its current leaders. He anticipates that the market dynamics will shift rapidly, creating new opportunities and challenges. Despite this uncertainty, Hero MotoCorp remains committed to investing in the range of Rs 1,000-1,500 crore in capex.
In FY24, Hero MotoCorp plans to launch the highest number of premium bikes in its history. This move aims to cater to the growing demand for premium motorcycles in the Indian market. Gupta also revealed that the company has plans to revamp over 500 stores in the coming months. Moreover, the CEO aspires to introduce more than 100 premium stores within the next fiscal.
To enhance customer experience, the company is launching Hero MotoCorp 2.0, a programme aimed at giving a facelift to its dealerships. This initiative aims to provide a modern retail experience aligned with the expectations of the next generation of customers. Over 500 stores will undergo a transformation in the coming months, while the company plans to open exclusive premium stores in select markets to enhance brand imagery.
Gupta emphasises the importance of scaling up exports for Hero MotoCorp's future growth. While the company remains strong in the commuter segment, he believes that market share in the premium and EV segments will be vital in the coming years. By focusing resources on 8-10 key markets, such as Nigeria, Colombia, Bangladesh, Nepal, Sri Lanka, and Africa, Hero MotoCorp aims to expand its footprint in these regions. Additionally, the company has its sights set on entering more South East Asian markets.
In terms of EVs, Hero MotoCorp is making progress with its Vida electric scooter. After successful pilot testing in three cities, the e-scooter will be made available in 100+ towns. Hero MotoCorp plans to sell Vida across 200+ outlets in India within the next 12 months. This push highlights the company's commitment to expanding its presence in the growing EV market.
Regarding the impact of the reduction in the Faster Adoption and Manufacturing of Electric Vehicles (FAME) subsidy, Gupta believes that companies that innovate quickly will be able to survive the market. He expects some consolidation among companies that fail to keep up with the changing landscape. The retrospective impact of the returning charger cost has been minimal, but the overall industry has faced a hit of Rs 30,000-40,000 per vehicle. Gupta emphasised the need for companies to focus on innovation in the EV sector to overcome challenges posed by subsidy reductions.
(Edited by : Shoma Bhattacharjee)
First Published: Jun 8, 2023 6:21 PM IST
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