THE WORLD'S LARGEST 2 WHEELER MANUFACTURER HAS AMBITIONS TO ZOOM AHEAD INTO THE ELECTRIC FUTURE. AND IT HAS A SOLID PLAN UP ITS SLEEVE. HERE'S WHAT.
After parting ways with Japanese behemoth Honda in 2011, Hero MotorCorp has come a long way. It not only has established its own blooming R&D centres by investing billions but also has factories in Colombia as well as Bangladesh. Its steely leadership, global expansion to 40 countries, manufacturing prowess & focus on fostering innovation has bode well for the company & its future prospects. The company has real ambitions to strike out partnerships in different fields, expand its global presence, launch 10 new products every year till 2025, focus on brand building & in their own words being the "future of mobility".
THE FABLED ELECTRIC WAY
Like every company in the automotive industry, Hero MotorCorp is eyeing the disruptive EV segment. The company has already dispatched it's first Made in India electric bike to Europe!
The company plans to further venture into this space through partnerships & acquisitions. It has already bought a minority stake in emerging electric scooter maker Ather & Ola Electric (who is also building the world's largest EV factory in Tamil Nadu, India). It has already announced a partnership with Taiwan based battery swapping company Gogoro Inc. Just like China's Nio, it seems like Hero will try both the "battery swapping" model as well the charging station model, on which it's German & Jaipur R&D centres are working on. With these synergies in place and an electric product launch slated in 2022, Hero seems destined to shoot for the stars.
HERO HATCH: THE INCUBATOR OF INNOVATION
Instead of a scattergun approach in dabbling with the development of new technologies, Hero MotorCorp decided to incubate its own startup, Hero Hatch to have a planned & well thought out strategy instead of creating coordination amongst a dozen different departments. Its flagship project has been the Quark-1, a new concept vehicle. The product can be used interchangeably as both, a two-wheeler and a three-wheeler, for personal and commercial operations. The rationale is to join the e-commerce bandwagon & establish the Quark-1 as an industry-standard in a billion-dollar market. The startup is reportedly also working on a slew of other exciting projects to be announced soon.
The Famed Quark-1
GOING PREMIUM
Hero dazzled the world by announcing an India joint venture with the American legacy brand Harley Davidson for its India operations. Its foray into the premium segment is set to expand with the launch of several high priced sports bikes. The partnership with Harley Davidson will also allow Hero to cement its status as a new premium player. This move makes sense as luxury items traditionally have higher profits.
STARTUP BONANZA
Hero has upped its ante regarding opportunities in the startup ecosystem. Its shrewd & timely entry into various exciting startups will allow the company to have a foot in various verticals. The chart below captures Hero's acquisition strategy.
MY TIME IS NOW
Source: ET Auto
The company has bounced back to be a leader in India's two-wheeler market. With a leading market share of 36%, the company has declared ambitions to enhance its global presence. It is already the world's largest 2 wheeler manufacturer by volume. Now the plan is to get a dominant share in emerging markets. The three-pronged EV strategy with smart startup stakes & a robust innovation pipeline can propel the company into the upper echelons of the global automotive industry. With the plans in place & execution in motion, the gears are set in motion! Can Hero MotorCorp accelerate!?