The largest 2-wheeler manufacturer in India, Hero MotoCorp, has set its eyes on an expedited product roadmap for the Vida brand’s electric vehicle (EV) business. In the post-earnings call with analysts on Wednesday, Swadesh Srivastava, the Head of the Emerging Mobility Business Unit, stated that the firm aims to produce a new range of EVs in the upcoming 18–20 months to increase its portfolio and cater to various segments of the Indian electric 2 wheeler market, including more affordable or “mainstream” products.
He claimed that the business started giving Vida scooters to customers in December in three cities and has already given out over 250 scooters.
Hero MotoCorp, on the other hand, reported a net profit of Rs. 711 crores for the December quarter, up 3.6% from Rs. Operating revenue increased by 1.8% to $8,031 crore from $7,883 crore. Gross margins at a record high of $19,600 per car increased sequentially by 250 bps to 30.6%. Periodic price increases, cost-cutting initiatives, and lower commodity costs all contributed to this.
Net margins were hurt by higher holiday discounts as well as increased spending on the Emerging Mobility Business Unit, which was characterised by the growth of the EV industry.
According to chief financial officer Niranjan Gupta, with inflation being stable and EV scooter sales beginning to increase, margins could rise over the next quarters.
“We are reinvesting our margins in the internal combustion engine business into building the EV category,” said Niranjan Gupta.
According to him, the industry’s poor gross margins, which are almost negative, will improve with size for both the industry and the company over the next two years.
The Vida’s footprint is now being expanded to new cities, and Hero MotoCorp has plans to launch multiple cities in the upcoming quarters. Without going into detail, Srivastava stated that Vida scooters are currently offered in Delhi, Bengaluru, and Jaipur and that the company has a significant order book.
This quarter, the business intends to roll out the scooters in a few more cities before going national.
With an ex-showroom price of Rs 1,59,000 and Rs 1,45,000, respectively, Hero MotoCorp introduced the Vida V1 Pro & Plus in October, making it one of the priciest electric scooters currently available on the local market. The Bajaj Chetak costs 151,958, but thanks to R&D work and supply chain ramp-up, the company hopes to introduce a redesigned version of the scooter at a reduced price point. The 450 Plus from Ather Energy is Rs 1,17,495 ex-showroom in Delhi, the S1 from Ola Electric is Rs 99,999, and the S1 Pro is Rs 1,29,999.
The iQube electric scooter from TVS Motor Company costs 93,056 and is being produced at a greatly increased rate with the goal of doubling volumes every three months.
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