Hero Electric 2-Wheeler Launch Hindered By Family Pact
The top motorcycle maker has to sell its electric 2-wheelers under a new brand name.
Hero MotoCorp might be the largest 2-wheeler manufacturer, but its electric vehicle launch has not taken shape yet due to a family pact that has so far balked of its objectives.
It is known that Hero has been developing electric 2-wheelers, with work currently ongoing at its research and development centres in Jaipur and Munich. However, it cannot launch a 2-wheeler EV under its name even if it wishes to.
That is due to a family pact between the Munjals, the family that runs the Delhi-headquartered company which states Hero Electric, the company headed by Chairman and Managing Director of Hero MotoCorp, Pawan Munjal’s cousin Naveen Munjal, has the exclusive rights to manufacture and sell electric 2-wheelers under the Hero brand.
At present, Hero Electric is the largest manufacturer of electric 2-wheelers in India. It holds an estimated market share of 45 percent, selling more than 50,000 units in FY20.
An official from the EV maker revealed that “Just as Hero Electric cannot enter the petrol 2-wheeler segment, Hero MotoCorp cannot launch electric two-wheelers under the Hero brand because of the family settlement. It can create or use any other brand name it wishes to, but not Hero.”
Pawan Munjal had stated to shareholders, at the company’s recently held annual general meeting, that Hero electric 2-wheeler launch preparations are on schedule.
“The company is working on different programs in the EV segment. We, at our own R&D centres in Jaipur and in Munich, are developing electric products. We are well on our way to launching electric products — well on time — that we have planned for ourselves. We also are looking out, looking around wherever there are possibilities of bringing in new technologies in the EV segment,” Munjal said.
He also noted that it will be independent of products launched by Ather Energy, in which Hero currently has 38.57 percent stake. The company has also revealed that it will select the brand name close to the launch of the proposed products.
When Hero electric 2-wheeler gets launched under a new brand, it is expected to kick-off with the unveiling of the electric bike which is known so far as the e.US (Electric Ultra Sport) concept.
If Hero can bring electric motorcycles with an aggressive price tag, then it will pave the way for the firm to lead in the affordable electric 2-wheeler space, something that does not exist now, as well.
Source – MoneyControl.com