Hero MotoCorp, one of the largest two-wheeler manufacturers in India, has announced plans to enter the electric motorcycle market, making it the second legacy brand to do so. The company, known for its popular Splendor model, has already established a presence in the electric two-wheeler space with its Vida electric scooter and is now focusing on expanding its EV portfolio. This announcement comes shortly after Royal Enfield's parent company, Eicher Motors, revealed its new EV brand 'Flying Flea' at EICMA 2024.

Hero's foray into electric motorcycles was revealed during its second-quarter earnings conference call, where the company confirmed its collaboration with California-based Zero Motorcycles to develop its first electric bike. The bike will be positioned in the middle-weight segment, and Hero states that the development process is already in advanced stages. Hero's long-term strategy includes launching six new electric models from fiscal year 2026 and beyond, with a focus on four key segments: Performance, Premium, Mid-Premium, and Mid.

In addition to the electric motorcycle, Hero MotoCorp is expanding its electric scooter lineup under the Vida brand. The company currently sells two models and plans to introduce more variants across different price segments before the end of 2024. This expansion aims to enhance Hero's competitiveness against peers like TVS, which markets the iQube, and Bajaj Auto, which sells the Chetak electric scooter.

Hero MotoCorp's investment in the EV space is significant, with the company having invested $60 million in Zero Motorcycles in March 2023. The company is also seeing positive growth in its electric vehicle sales, with 11,600 units sold during the festive season, increasing its market share to 10% in 10 major cities. In regions like Kolkata, Cuttack, and Bhilwara, Hero commands a 20% market share, signaling strong demand for its electric products.

With a total investment of Rs 175 crore in its EV business, Hero MotoCorp expects to further increase its market share in the electric two-wheeler segment. Currently, the company holds 5.2% of the market share in this growing space, and the upcoming launches are expected to boost its position. The entry of legacy players like Hero into the EV market has intensified competition, with Ola Electric facing challenges in maintaining its market share.