Hero MotoCorp announces collab with California (USA) based electric motorcycle and powertrain manufacturer, Zero Motorcycles
Hero MotoCorp is finalizing a collaboration agreement with Zero Motorcycles. The latter, a California (USA)-based manufacturer works with premium electric motorcycles, and powertrains. Hero will be investing in the US based company.
India boasts of a larger than life two-wheeler industry. It’s not difficult to see how much more nuanced 2W penetration is as compared to private car purchases. Keeping this in mind, and the commitment made to improve the presence of electric vehicles by the end of the decade, it’s no surprise that the electric two-wheeler industry is a key focus area.
Electric 2W industry growth
While Electric vehicle market growth goals will be continually monitored and revised, one thing is for certain. Current business activity portends to growth in the short term. And considering just how young the e2W market is, no doubt multiple players are coveting market leadership positions. And herein lies great market potential.
Electric two wheeler sales volumes are increasing but they contribute to a small percentage of total two wheeler sales. And the market is dominated by motorcycles across segments. And, growth in the e2W industry right now finds focus limited to electric scooters. In fact, the number of e-motorcycles available are rather few.
Co-developing electric motorcycles
Major disruptions are being attributed to new names in manufacturing, and one is yet to find a traditional two-wheeler manufacturer take the lead. So, with Hero MotoCorp announcing its entry, it’s an exciting time for the electric two wheeler space. Hero maintains leadership in the two-wheeler industry, and one expects big things from the manufacturer in the electric market.
Hero MotoCorp’s collaboration with Zero Motorcycles will focus on co-developing electric motorcycles. The company’s board approved an equity investment up to US$60 million in Zero Motorcycles. Hero MotoCorp is looking at organic and inorganic /collaboration initiatives in the electric vehicle market. For now, the manufacturer is geared up for its first electric 2W launch under its emerging mobility brand Vida. Product details will be available on October 7, 2022.
Hero MotoCorp collaboration initiatives
Considering the number of new age manufacturers in the foray, it’s no surprise that smaller players are perfectly fine with associating with bigger names. The age of start-ups ensures business owners selling rather quickly after establishing a business. Where older manufacturers are concerned, collaborations have ensured efficiency on economies of scale.
And with Hero MotoCorp being an established player, it could create ripples in the e2W industry through investments in multiple companies that align with its EV goals. This includes GoGoro, and Ather Energy.
Source: Electric - rushlane.com
