Electric Scooters' Market Share to Skyrocket

Hero Moto, India's leading two-wheeler manufacturer, has made a bold prediction that electric scooters will capture 50% of the scooter market by 2030. Despite the current leadership in the category being as unpredictable as 'Russian roulette', the company is investing heavily in the electric vehicle (EV) sector. With a Rs 1,000 crore investment planned for this year alone, Hero Moto is gearing up to launch new electric scooters and motorcycles, including a partnership with the American brand 'Zero'.

Current Market Scenario and Future Projections

Currently, electrics hold a 15% share in the scooter market and a mere 5% in the overall two-wheeler market, primarily due to negligible sales in motorcycles. Hero Moto's 'Vida' brand, launched in October 2022, has seen slower expansion compared to its rivals. However, the company remains optimistic about the future, especially with its majority control in Ather, an electric start-up that sold 1.26 lakh units in 2024.

Challenges and Opportunities in the Electric Motorcycle Segment

While electric scooters are expected to grow rapidly, the motorcycle segment faces challenges. The need for more power and longer range necessitates bigger batteries, making electric motorcycles heavier and costlier. Hero Moto estimates that by 2030, electrics will only hold a 10% share in the motorcycle market. The company is exploring collaborations and joint initiatives, including a shared charging ecosystem with Ather, to overcome these challenges and capitalize on the opportunities in the EV sector.