Hero MotoCorp VIDA V1 Electric Scooter | Image: vidaworld.com
The move coincides with ongoing India-UK free trade agreement discussions that could lower tariffs in the automotive industry, providing further opportunities for growth.
Speaking to the Financial Times, Hero’s chief executive Niranjan Gupta highlighted the positive customer sentiment in these regions towards their e-scooters. The company, already a major player in Asia, Africa, and Latin America, plans to leverage this enthusiasm as it navigates the shift towards electric mobility.
In addition to its e-scooter plans, Hero is exploring the potential for exporting larger motorcycles with conventional petrol engines, including its premium Mavrick model, to the UK and other European countries. However, analysts believe that success in these developed markets will require offering more expensive and premium motorcycles, a segment where Hero has yet to establish a strong foothold.
Hero-Harley Davidson partnership
Hero’s existing partnership with Harley-Davidson allows it to produce the iconic brand’s motorcycles for the Indian market. Gupta noted that expanding Harley-Davidson exports to the UK would depend on future agreements with the Milwaukee-based company, as their current partnership is limited to India.
The company’s push into Europe comes as India’s vehicle emission standards, updated in 2020, now meet global regulations, opening new doors for Indian producers. With Chinese imports facing higher levies, Indian manufacturers like Hero see new opportunities in developed markets. However, the challenge for Hero will be navigating the competitive landscape and successfully positioning its premium motorcycles alongside its e-scooters in markets accustomed to higher-end models.
Hero MotoCorp sells 512,360 units in August 2024
Hero MotoCorp reported sales of 512,360 units in August 2024, a 38 per cent month-on-month rise. Compared to the same period last year, the automaker saw an 8 per cent growth in year-to-date sales.
In contrast, other automobile manufacturers faced a downward trend in August 2024. Tata Motors reported an 8.1 per cent decline in total sales, with 71,693 vehicles sold compared to 78,010 units in August 2023. Similarly, Maruti Suzuki, another major player in the Indian automotive sector, experienced a 4 per cent year-on-year decline in total sales.
As reported earlier by Business Standard, this rise in sales by Hero comes despite the company facing supply shortages that marginally affected its sales for the month. However, Hero MotoCorp remains optimistic about a recovery in September as it anticipates overcoming these supply constraints.
First Published: Sep 19 2024 | 11:22 AM IST
