Hero Motocorp Ltd (HML) at 34% market share is the largest two wheeler manufacturer in India.
Given the increasing interest in Electric Vehicles (EV) globally, market has been keenly awaiting the launch by HML.
The Company has also made it’s intentions clear – beside in the process of launching it’s own EV, it has also made some quick strategic investments in this space.
For it’s own EV, HML had set up a clean mobility unit to roll out the e-scooters under the Vida brand from its facility in Chittoor, Andhra Pradesh.
Now however, the Company has again announced delay in it’s EV launch.
Initially it was supposed to get launched in March 2022, then July 2022 and now further postponed to the festive season (September – October 2022).
Official reason – semiconductor shortage.
However, in my personal view it may be also due to the recent incidents of EV two wheelers catching fire in India and that too across brands.
HML may be wanting to do further rigorous road tests and quality checks to avoid those kind of incidents.
Given HML’s leadership position it has to be mindful about it’s brand image compared to many others.
Personally, I am fine with the delay.