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Hero MotoCorp Advances In Electric Scooter Market With Vida And Ather Energy Investments
Hero MotoCorp, a prominent player in the two-wheeler industry, is making strides in the electric scooter market with its Vida brand. The company currently offers the Vida V1 electric scooter, available in two variants: Vida V1 Pro and Vida V1 Plus. This move aims to strengthen Hero's position in the competitive Indian electric two-wheeler segment.
In a strategic investment, Hero MotoCorp has infused approximately Rs 124 crore into Ather Energy, a Bengaluru-based electric scooter manufacturer.
This is not Hero's first investment in Ather; the company already holds over 40 per cent of Ather's shares, making it the largest shareholder. With this latest investment, Hero has acquired an additional 2.2 per cent stake in Ather Energy.
Ather Energy has faced a slight revenue decline recently. The company's revenue for the financial year 2023-24 stood at Rs 1,753 crore, which is 1.7 per cent less than its overall administrative expenses.
In comparison, Ather's revenue for the financial year 2022-23 was Rs 1,784 crore. Despite this setback, Hero MotoCorp's significant investment aims to support Ather in overcoming its current financial challenges.
To address declining sales and increasing market competition, Ather Energy has introduced new products and discounts.
Recently, Ather launched the Rista electric scooter model in India, targeting family users and aiming to compete with the popular Honda Activa. The Rista is available in three battery pack options: S 2.9 kWh, Z 2.9 kWh, and Z 3.7 kWh.
The on-road price of the Rista S 2.9 kWh variant in Chennai is over Rs 1.16 lakh. The Rista Z 2.9 kWh variant is priced at Rs 1.20 lakh, while the Rista Z 3.7 kWh variant costs Rs 1.52 lakh. This electric scooter offers a range of 123 km to 160 km on a single charge.
Ather Energy's annual production capacity is 4.50 lakh units, with plans to produce 1.50 lakh units of the Rista electric scooter annually. The company's existing 450 series scooters are designed for young and performance-oriented customers.
DriveSpark thinks
Hero MotoCorp's continued investment in Ather Energy underscores its commitment to expanding its footprint in the electric two-wheeler market. As competition intensifies, both companies are focusing on innovation and customer-centric strategies to maintain their market positions.
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