Hero MotoCorp eyes leadership position in electric two-wheeler segment

Hero MotoCorp, the country's largest two-wheeler maker, is eyeing leadership position in the electric two-wheeler segment globally, according to its annual report for 2021-22.

The company, which currently leads the traditional two-wheeler segment globally in terms of volumes, is looking to foray into the electric segment in the upcoming festive season.

Hero MotoCorp had last year crossed the 100 million cumulative production milestone since its inception in 1984.

The company had achieved its first one million cumulative production milestone in 1994 and went on to cross 50 million units in 2013 and 75 million units in 2017.

"This year will see Hero MotoCorp claim its position in the exciting clean mobility space in a bold avatar. Hero MotoCorp will transform its leadership in the internal combustion engine (ICE) market into the electric vehicle space globally!" the company Chairman and CEO Pawan Munjal informed shareholders.

He noted that the company is geared up for the next decade.

"As we have our eyes on the production of the next 100 million by the end of 2030, we are taking strides towards sustainability and electrification with a single-minded determination to Be the Future of Mobility," Munjal said.

He further said: "All I can promise is that, while the first 100 million was achieved with the production of motorcycles and scooters, the next 100 would certainly be an all-new, innovative and greener body form."

In line with company's vision to lead the migration to the future of mobility, it has unveiled 'Vida' as its new brand identity for emerging mobility solutions.

"Through Vida, which means 'life', we will not only revolutionise the electric mobility space, but will also ensure a cleaner, greener and better future for generations to come," Munjal said.

He noted that with Taiwan's Gogoro Inc, it will bring the largest battery-swapping network to India.

"We are also in discussions with Bharat Petroleum Corporation Ltd to set up battery charging infrastructure for EVs across the country," Munjal said.

With the investment in Ather Energy, starting from 2016, the company is also accelerating its electric journey and bringing sustainable mobility solutions that deliver value to stakeholders, he noted.

Elaborating on other initiatives, Munjal said the company is focussing on digital initiatives to push sales.

"The company has launched a sales and aftersales services platform on WhatsApp. Going forward, we expect 30 per cent of our sales to be generated from digital channels," he added.

Reflecting on the last fiscal, Munjal said, the two-wheeler industry faced multiple headwinds, owing to weak demand and continuous challenges in the supply chain.

The rural markets, which account for over half the annual sales of motorcycles and scooters in India, remained under economic stress, he noted.

"Higher material costs, shortages of products and services and soaring fuel prices increased the cost of ownership, further dampening consumer sentiment and their ability to buy. All of these events impacted two-wheeler sales in India," Munjal stated.

To offset the adverse impact, Hero MotoCorp focused on expanding exports, optimising costs, prioritising projects, improving internal processes and re-evaluating options, he said.

The company reported total income of Rs 29,802 crore in 2021-22.