Hero MotoCorp to launch electric two-wheelers in mid, affordable segments

India’s largest two-wheeler maker Hero MotoCorp on Wednesday said it will take big strides in electric vehicles (EVs) through product launches in the mid and affordable segments in the coming year.

“We see a very positive outlook for upcoming years,” says Niranjan Gupta, chief executive officer (CEO) of Hero MotoCorp.

The automaker expanded its emerging mobility brand, VIDA, Powered by Hero, to over 100 cities in the country and along with Ather Energy has also expanded the charging network to over 2000 charging points in over 100 cities.

India’s largest two-wheeler maker owns around 40% stake in EV maker Ather Energy.

“Moving forward, we expect the macro‐economic factors to aid the industry’s growth. With commodity prices remaining stable, expectations of normal monsoons, and government spending expected to increase, we see multiple tailwinds for the sector over the upcoming quarters. We will be driving market share gains on the back of our launches in premium and 125 cc segment done in FY 24. Further, we are going to boost scooter portfolio by launching Xoom 125 cc and Xoom 160 cc in first half of the fiscal,” says Gupta.

Hero MotoCorp reported a consolidated net profit of ₹943 crore for the quarter ended March, reflecting a growth of 16% over the same period last year. Consolidated revenue for the quarter stood at ₹9,617 crore, a growth of 14% over previous year.

The company declared a final dividend of ₹40 per share. This dividend together with interim and special dividend of ₹100 per equity share, takes the aggregate total dividend for the year 2023- 24 to ₹140 per equity share.

EBIDTA margin for the quarter was at 14.3%, reflecting an improvement of 120 basis points on a year-on-year basis, driven by product mix, lower commodity costs, higher savings, and judicious price increases.

“From the highest number of product launches, to the expansion of new format retail outlets and upgrade at super speed, to a digital‐first approach in premium, we set the building blocks in place for accelerated growth in future. Our fiscal prudence and strategic actions ensured that our financial performance has been robust, resulting in highest ever annual revenue and profits,” says Gupta.

During the year, Hero MotoCorp made expanded its premium motorcycle portfolio by launching six new products – Xtreme 125R, Xtreme 200S, Xtreme 160R 4V, Harley-Davidson X440, Karizma XMR and the Mavrick 440.

In April, the two-wheeler segment saw notable growth due to improved supply and the increasing demand for 125cc models, according to the Federation of Automobile Dealers Associations of India. “Positive market sentiments, bolstered by stable fuel prices, a favourable monsoon outlook, festive demand and the marriage season, contributed to this rise. New model launches also helped drive growth, despite some delays in supply,” says FADA.