**Hero MotoCorp Aims for Major Growth in Electric Vehicle Sales by 2027**
Hero MotoCorp is targeting a significant increase in its electric vehicle (EV) sales, aiming for a more than six-fold rise in monthly sales as it strives for profitability in its EV segment by 2027. The company, India’s largest two-wheeler manufacturer, sold approximately 4,000 electric scooters monthly in FY25 and is now setting its sights on achieving sales of 25,000 to 30,000 units per month. This ambitious goal would result in annual sales of around 360,000 units by the fiscal year 2027-28.
In the previous fiscal year, Ola Electric led the market with 344,009 e-scooter sales, followed by TVS Motor Company and Bajaj Auto, which sold 237,576 and 230,806 units, respectively. To break even, Ola Electric’s founder, Bhavish Aggarwal, indicated that the company would need to achieve 50,000 monthly sales of its electric scooters.
Hero MotoCorp’s earnings before interest, taxes, depreciation, and amortization (EBITDA) margin for its EV business improved from -155% in FY24 to -95% last year, reflecting a positive trend as sales increased. Acting CEO Vikram Kasbekar noted that profitability will be driven by scaling operations, reducing costs through increased localization, and realizing benefits from production-linked incentives (PLI).
The company reported a remarkable 175% increase in sales of its electric Vida scooters, reaching 48,674 units, according to data from the Federation of Automobile Dealers Associations (FADA). Hero MotoCorp plans to apply for PLI benefits for its Vida Pro model by July this year.
As competition in the electric vehicle market intensifies, analysts like Saji John from Geojit Financial Services believe that while Hero’s path to profitability appears feasible, significant challenges remain. The company is expected to expand its dealer network and compete with established leaders in the sector. The performance of its affordable electric products will be crucial to its success.
Hero MotoCorp entered the electric two-wheeler market in 2022 with the launch of the Vida scooter, initially selling only about 1,000 units in its first year. However, sales have accelerated, particularly following the introduction of the Vida V2 scooter, priced under ₹1 lakh, which has contributed to a market share increase from 1.87% to 4.23% over the past year. Kasbekar mentioned that the company exited March with a market share of 7%, with expectations for continued growth as it scales its product offerings.
Looking ahead, Hero MotoCorp plans to introduce two new affordable electric models in the first half of this financial year, including the Vida Z model, which is set to launch in July and will be available in European and UK markets.
**FAQ**
**What is Hero MotoCorp’s target for electric vehicle sales by 2027?**
Hero MotoCorp aims to increase its monthly electric vehicle sales to 25,000-30,000 units by 2027, translating to approximately 360,000 annual sales.