India's top two-wheeler maker Hero MotoCorp has been expanding its presence in the B2B segment with its brand Hero Electric and relevant partnerships in the electric vehicle space. Hero Electric is one of the largest manufacturers of electric two-wheelers in the Indian market and the brand has even earned recognition in rural India. The company states it will continue with green alliances to reach the zero-emission goal. Hero aspires to convert 35 percent of sales from the B2B segment by 2026.
Here are 6 things that Hero is doing for the electric vehicle ecosystem-
Hero Electric and Mahindra Group have formed a partnership-
Mahindra Group will manufacture Hero Electric's electric two-wheelers, Optima and NYX. The Mahindra-Hero Electric association, together with the expansion of the latter's current facility in Ludhiana, will enable Hero Electric to manufacture more than one million EVs per year by 2022. They have rolled out their first batch of electric two-wheelers- Optima from the Pithampur plant.
Hero MotoCorp is investing in electric vehicle startup-
Hero MotoCorp owns a 35% stake in Bangalore-based Ather Energy through its early-stage investment in 2016. They pumped a new investment of up to ₹420 crores in Ather Energy. The company's board has approved the investment in one or more tranches.
Hero MotoCorp is entering battery-swapping-
Hero MotoCorp and Taiwan’s electric scooter pioneer Gogoro had set up the JV last April to deploy a large battery-swapping network in India. the company has now pumped in $285 million in its joint venture with Gogoro to expand the EV refueling network.
Hero Electric is joining hand with SBI-
Hero Electric has joined hands with the State Bank of India (SBI) to deliver two-wheeler finance solutions for its range of electric scooters. The company has announced that customers opting to purchase any Hero Electric scooter will get an additional ₹ 2,000 off on payments made through YONO, SBI's integrated digital banking platform.
Hero Electric will employ ALT Mobility-
Hero Electric will provide 10,000 Nyx electric scooters to the logistic aggregators and fleet operators through ALT Mobility by 2023. ALT Mobility offers a leasing platform dedicated to two and three-wheeler electric vehicles for the logistics market on an affordable monthly subscription to fleet operators. It is expected that the last-mile delivery commercial vehicles will be their first target.
Hero Electric is set to upskill-
Hero Electric is ready to train around 20,000 mechanics in the area of electric vehicle servicing and repairs. These mechanics will be selected from around the country with the help of ReadyAssist. ReadyAssist is one of the largest roadside assistance companies in India with a large existing network of around 5,000 mechanics located around the country. This partnership is a part of Hero Electric's Private Garage Owners (PGO) initiative to upskill existing mechanics to enable the EV ecosystem to reach the rural areas as well.
Hero still lacks diversification as more than 80% of its volumes/profits are from commuter motorcycles, and a weak execution record in premium motorcycles, scooters, and exports. Contrary to industry anticipations, the commuter motorcycle segment is to be the most exposed to EV disruptions. Despite multiple launches, it has been unable to scale its scooter and premium bike offerings, like Honda & TVS. Nevertheless, only brands like Hero MotoCorp and Maruti Suzuki have managed to get maximum reach in India. The addition of low-tech cheaper electric two-wheelers in rural markets, with the help of Hero's fame in rural India, could make rural adoption of EVs a reality.
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