Hero MotoCorp, India’s leading two-wheeler manufacturer, is set to enter the European market with the launch of its Vida electric scooters in the UK, France, and Spain starting in mid-2025. This strategic move marks Hero’s first foray into developed markets, aiming to tap into the growing demand for electric vehicles in Europe.
The company’s expansion plan aligns with the ongoing India-UK free trade agreement discussions, which may result in reduced tariffs for the automotive industry. In an interview with the Financial Times, Hero’s CEO, Niranjan Gupta, highlighted the positive response from European consumers towards their e-scooters. Already a major player in Asia, Africa, and Latin America, Hero plans to leverage this market enthusiasm as it pivots toward electric mobility.
In addition to its e-scooter venture, Hero is also exploring the possibility of exporting larger motorcycles, including its premium Mavrick model, to the UK and other European nations. However, analysts suggest that Hero’s success in these developed markets will depend on its ability to offer premium, high-end motorcycles—an area where the company has yet to establish a strong market presence.
Hero-Harley Davidson Partnership
It’s existing partnership with Harley-Davidson allows it to manufacture motorcycles for the Indian market. CEO Niranjan Gupta mentioned that expanding Harley-Davidson exports to the UK would depend on future agreements, as their current collaboration is limited to India.
It’s expansion into Europe is buoyed by India’s upgraded vehicle emission standards, which now comply with global regulations. This development, coupled with higher levies on Chinese imports, creates new opportunities for Indian manufacturers in developed markets. However, it faces the challenge of navigating the competitive European landscape, especially in positioning its premium motorcycles and e-scooters alongside established high-end brands.
Powering Sales Growth: It Reports 38% Surge in August
In August 2024, Hero MotoCorp recorded sales of 512,360 units, a 38% increase month-on-month and an 8% growth in year-to-date sales compared to the same period last year. This strong performance contrasts with other automobile manufacturers, such as Tata Motors and Maruti Suzuki, which reported declines in total sales during August. Tata Motors saw an 8.1% drop, while Maruti Suzuki experienced a 4% year-on-year decrease. Despite facing supply shortages, Hero remains optimistic about a recovery in September, as it anticipates overcoming these constraints.
