Hero MotoCorp to roll out Vida e-scooters in UK: report

Leading global manufacturer of motorcycles and scooters Hero MotoCorp Ltd will roll out its Vida electric-scooter brand in the United Kingdom, apart from France and Spain, by the middle of next year, the Financial Times reported, citing the company’s chief executive.

The two-wheeler maker, which also makes the Harley-Davidson range of motorcycles in tie-up with the US firm, is the biggest manufacturer of motorcycles and scooters in India.

The plans to export its electric brand to the UK also comes as both India and the UK are negotiating a free trade agreement (FTA) aimed at cutting duties, including on automobiles.

India and the UK are expected to hold the next round of FTA negotiations next month to resolve pending issues, commerce secretary Sunil Barthwal said this week, adding that UK officials are briefing their new ministers about the FTA. The India-UK FTA talks began in January 2022. The 14th round of negotiations stalled as both nations went to polls.

Hero MotoCorp has been a leading producer in the internal combustible engine two-wheeler segment. It entered the electric vehicle (EV) market in October 2022 with the VIDA V1 e-scooter. This year, the two-wheeler maker’s EV sales made up 0.74% its overall sales.

Key rivals TVS Motor Co. and Bajaj Auto Ltd have made inroads in the EV market. While TVS’ EV market share rose from 6.38% by the end of August 2023 to 7.26% in August this year, Bajaj stood out with the highest growth in EV adoption, jumping from 4.04% in 2023 to 8.32% during the same period under consideration this year.

The auto sector is at a critical juncture in India. Electric mobility is gaining momentum across multiple segments in the India auto sector.

While traditional ICE vehicles dominate the market, EVs are rapidly catching up in the two-wheeler and three-wheeler segments.

Lower running costs, government subsidies, reduced maintenance expenses, and a competitive total cost of ownership make EVs a compelling option for consumers.

India’s top decision-making ministerial body this month approved a ₹10,900 crore (about $1.3 billion) scheme to promote electric vehicles (EV) over a two-year period in the country.

Dubbed PM E-DRIVE, or PM Electric Drive Revolution In Innovative Vehicle Enhancement, the scheme will replace the existing Faster Adoption and Manufacturing of Electric Vehicles, or FAME, program that ran for nine years until March.

The new scheme subsidizes electric two-wheelers, three-wheelers and buses, apart from hybrid ambulances and electric trucks, but excludes electric and hybrid cars.