Hero and Bajaj to target India’s growing mass electric scooter market
Hero MotoCorp and Bajaj Auto are both gearing up to introduce new electric two-wheelers priced under Rs. 1 lakh, signalling a strategic push into the mass-market segment that dominates India’s EV scooter space. This pricing segment currently accounts for nearly 60% of electric two-wheeler sales in the country.
Hero MotoCorp is expected to launch two new budget-friendly electric models under its VIDA brand in July. These launches are seen as a critical step in Hero’s goal to significantly scale its EV business. According to company executives, Hero believes that achieving monthly sales volumes of 25,000-30,000 units will be essential for the electric division to reach financial breakeven — a target it hopes to meet within two years.
Meanwhile, Bajaj Auto is also poised to re-enter the under-Rs. 1 lakh market with a new Chetak variant, possibly by the festive season. The company had earlier introduced a low-cost version but later withdrew it. Its re-entry into this price band reflects the increasing importance of affordability in capturing EV market share.
At present, Ola Electric and TVS Motor Company dominate the mass-market EV space. Ather Energy, another major player, has taken a different path by choosing not to introduce a product below Rs. 1 lakh, though competitive pressure may prompt a change in strategy.
Despite being a late mover in the electric mobility space, Hero has shown recent signs of momentum. The company increased its market share in FY25 to over 6%, selling more than 32,000 units during the calendar year. Its EV brand VIDA saw a significant surge in sales, with volumes growing by 200% year-over-year. However, VIDA remains in the fifth position in terms of overall e2w sales, trailing behind competitors like Ola, TVS, Bajaj, and Ather.
Hero’s upcoming launches have been hinted at through newspaper advertisements, though official product details are still under wraps. Company leadership maintains that affordable offerings, cost optimisations, and expected government incentives through the PLI (Production-Linked Incentive) scheme will be instrumental in improving profitability.
Industry analysts believe that while Hero is entering the mass segment later than others, the overall electric two-wheeler market is still in its early stages. With current EV penetration at just around one million units in a six-million-unit scooter market, there is substantial headroom for growth. Estimates suggest that the EV segment could triple in size over the next five years.
Experts also highlight Hero’s wide distribution network, particularly in rural and semi-urban regions, as a key asset for its expansion. Since many consumers in these areas can charge vehicles at home, infrastructure limitations may not be a major barrier. Price, however, remains the decisive factor in driving adoption.
That said, some industry insiders remain skeptical about how well Hero’s new products will be received. They suggest that Bajaj’s entry could further intensify competition and test brand loyalty in the price-sensitive segment.
As both Hero and Bajaj prepare to broaden their EV portfolios with lower-priced offerings, the coming months will be critical in reshaping the competitive dynamics of India’s electric two-wheeler market.
