• Hero Moto anticipates that electric scooters will constitute 50% of the market by 2030.
• The current market share of electric scooters stands at 15%, with overall two-wheelers at 5%.
• Niranjan Gupta, CEO of Hero Moto, emphasized the competitive landscape as akin to "Russian roulette."
• The company plans to invest ₹1,000 crore in its electric vehicle sector this year.
• Hero Moto's sales figures highlight its slower growth relative to competitors like Ola Electric and TVS Motor.

In a recent statement, Hero Moto, India's largest two-wheeler manufacturer, projected that electric vehicles (EVs) will make up 50% of the scooter market by 2030. CEO Niranjan Gupta labeled the current leadership dynamics in the electric two-wheeler segment as resembling a game of "Russian roulette," where market positions continuously shift among various players as they vie for dominance. Gupta remarked that "We see the EV business as a marathon, and not a sprint," highlighting the long-term strategy the company is adopting in the rapidly evolving market.

Currently, electric scooters account for 15% of the scooter market, with the overall electric share in two-wheelers at only 5%. Hero Moto, which launched EVs under the 'Vida' brand in October 2022, has been relatively slow to ramp up sales compared to its rivals, with recent sales figures showing that the company recorded 43,695 units sold, which pales in comparison to Ola Electric's 4 lakh units and TVS Motor's 2.2 lakh units in 2024 as per data from the Federation of Automobile Dealers Associations (FADA). Gupta noted that a potential silver lining for Hero Moto is Ather, the startup in which it holds a majority stake, which successfully sold 1.26 lakh units last year.

Describing the ongoing shifts, Gupta stated, "I don't think we should make out anything with the current numbers. This Russian roulette will continue for some more time till the category becomes sizeable." He further expressed that electric growth would be more pronounced in scooters, with a slower adoption predicted in motorcycles; the firm estimates that electrics will only reach about 10% of the motorcycle segment by 2030. Factors such as the need for more powerful batteries make motorcycle electrification challenging and potentially unviable for commuter bikes due to concerns over weight and cost.

Hero Moto is also exploring collaborative opportunities with Ather, particularly concerning shared charging ecosystems, alongside ongoing developments with their partner, the American brand 'Zero'. Gupta emphasized that there are "many possibilities of cooperation" being considered, as the company develops its own electric motorcycle prototypes, although he refrained from providing specific timelines for these launches.

As Hero Moto navigates the challenges of the electrification wave, the company remains optimistic about the broader two-wheeler market, supported by an increase in demand, particularly resonating within rural areas where it retains a 53% market share.

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