Hero MotoCorp and US Partner Near Completion of Mid-Sized Electric Bike Development

Hero MotoCorp, in collaboration with US-based Zero Motorcycles, is in the advanced stages of developing a mid-sized performance electric motorcycle. The announcement highlights the ongoing efforts between the two companies to deliver premium electric mobility solutions in the middle-weight segment.

Hero MotoCorp CEO Niranjan Gupta confirmed the progress during an analyst call, stating, “We are developing in partnership with Zero Motorcycles, and the bike will be positioned in the middle-weight segment.” Gupta also added that the project is nearing completion, though a specific launch timeline has not yet been announced.

A Partnership for Premium Electric Motorcycles

The collaboration between Hero MotoCorp and Zero Motorcycles was formalized in 2023, building on an equity investment of up to $60 million approved by Hero MotoCorp's board in September 2022. Zero Motorcycles, headquartered in California, is renowned for its expertise in electric motorcycles and powertrain technologies.

This partnership reflects Hero MotoCorp's commitment to establishing a strong foothold in the electric vehicle (EV) market by leveraging Zero’s cutting-edge technology to produce a high-performance, mid-sized electric motorcycle.

Expanding Electric Scooter Offerings

Beyond motorcycles, Hero MotoCorp is actively expanding its electric scooter range. Gupta emphasized the company’s goal to cover multiple price and customer segments within six months. The current VIDA electric scooter lineup, priced between ₹1 lakh and ₹1.5 lakh (including state subsidies), is already available in over 230 cities across India through 400 sales touchpoints.

This strategic expansion aims to solidify Hero MotoCorp's presence in the EV scooter market, catering to a wider audience with varied pricing and performance needs.

Compliance with PLI Scheme

Hero MotoCorp is optimistic that its electric vehicle products will align with the Production-Linked Incentive (PLI) scheme by FY26. The scheme aims to incentivize manufacturers for boosting domestic production and encouraging the development of advanced technologies in the EV sector.

Economic Outlook and Domestic Market Performance

Gupta expressed optimism about the overall economic trajectory, emphasizing a positive outlook for the auto sector. He noted that the festive season’s demand surge is likely to sustain beyond the traditional period.

Overseas Market Traction

Hero MotoCorp is also experiencing growth in international markets, particularly in Colombia and Mexico. Gupta highlighted that Colombia achieved a bottom-line turnaround, becoming cash and EBITDA positive for the first time. Similarly, Mexico is showing promising traction alongside other markets.

However, challenges persist in markets like Bangladesh, Turkey, and Nigeria, which require additional focus. Gupta explained the company’s strategy of prioritizing the top ten markets while selectively entering new ones to maintain balanced global growth.

Conclusion

Hero MotoCorp's collaboration with Zero Motorcycles represents a significant step forward in the global electric mobility space. The advanced stage of development for their mid-sized electric motorcycle underscores their commitment to innovation and sustainability. With a diversified EV portfolio, growing international presence, and a positive economic outlook, Hero MotoCorp is poised for continued growth and success in the evolving automotive landscape.