Hero MotoCorp ramps up its electric scooter ambitions with a substantial ₹1,500 crore investment, boosted sales and a diverse product lineup aimed at capturing market share and expanding exports amid intensifying competition.
Hero MotoCorp is trying to turn its electric scooter business from an experiment into a meaningful growth engine, backed by a ₹1,500 crore capital spending plan and a sharp improvement in Vida sales in the quarter to June. The company’s latest figures suggest the long-delayed EV push is gathering momentum, even as legacy two-wheeler makers continue to face intense competition, pricing pressure and the challenge of convincing buyers to move away from petrol models.
According to Hero MotoCorp’s quarterly update, revenue from operations rose 36% year on year to ₹12,999 crore, helped by a 23% increase in volumes, a stronger product mix and higher realisations. Earnings before interest, tax, depreciation and amortisation increased 25% to ₹1,727 crore, while profit after tax climbed 29% to ₹1,454 crore. The company’s EBITDA margin was 13.3%, with commodity costs offset in part by savings initiatives and selective price increases.
The standout performance came from Vida, Hero’s electric scooter brand, which recorded retail sales of 57,058 units in the quarter, up from 21,652 a year earlier. That lifted its market share to 10.9% from 6.9%, based on VAHAN registration data. Trade Brains reported that the Vida VX2 has been central to the surge, helping the brand reach a top-two position in 62 towns and a market share above 20% in 53 towns. Hero is also widening the product line-up with the VX2 Plus 4.4kWh, which offers an IDC range of 187 km, and the VX2 Go FB, a fixed-battery version with a 128 km range.
Hero’s spending plans are broader than EVs alone, but electric scooters are one of the main focus areas. The company says the ₹1,500 crore capex will support EV capacity expansion, motorcycle and scooter production upgrades, a premium-bike facility at Neemrana and a new parts plant in Tirupati. The company also says it operates the largest fast-charging network among two-wheeler makers, with 5,900 points, and has pushed a battery-as-a-service model to cut upfront ownership costs. Additional support is coming from government incentives: Hero booked ₹48 crore under the production-linked incentive scheme in the quarter, and it expects more of its portfolio to become eligible by December 2026.
The strategy now looks less like a single-model push and more like a wider bet on premium scooters, EVs and export-led growth. Hero has also launched the DIRT.E K3, an electric off-road motorcycle aimed at younger riders, and Vida made its overseas debut in Nepal during the quarter. ArthNeeti reported that Hero is targeting stronger earnings growth in FY27, while other business updates suggest the company wants to outpace the broader industry and move its EV arm closer to profitability over the next two years. The key question is whether the recent sales momentum can hold once the new capacity comes on stream and competition intensifies further.
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