India’s largest two-wheeler manufacturer, Hero MotoCorp, is intensifying its efforts in the electric vehicle (EV) space to capture a larger market share. The company, which launched its Vida brand in 2023, has been expanding its presence across the country, with a presence in over 116 cities and 203 touchpoints. Downstream product manufacturer, aluminium die-casted automotive parts manufacturer Sundaram Clayton (also known as TVS Holdings), is also in on its game-changing strategy to revolutionise the face of the electric vehicle market in India.
Hero to establish independent electric vehicle unit
Hero MotoCorp Ltd, one of India’s leading two-wheeler manufacturers, continues to intensify its efforts in the electric vehicle (EV) sector. With a market share in the mid-single digits, the company aims to secure a larger portion of this expanding market. Since launching its Vida brand in 2023, Hero has gradually extended its presence across the country, now operating in more than 116 cities with over 180 dealerships and 203 touchpoints.
From 1 February, Hero’s Electric Vehicle and Emerging Mobility Business Unit (EMBU) will function as a fully independent entity. The EMBU, established in 2019, was designed to foster innovation in emerging mobility, including EVs.
The company confirmed in an exchange filing, “The EV & Emerging Mobility Business Unit will transition to a fully independent and empowered unit, leading the EV revolution and next-generation mobility under the mentorship of the Executive Chairman Pawan Munjal.”
It further elaborated, “As part of this strategic shift, the Product Development teams across EMBU, Hero Tech Centre Germany (TCG) and Hero Centre for Innovation and Technology (CIT) will work in synergy to set new industry benchmarks.”
This strategic move coincides with the impending departure of Hero’s Chief Executive Officer, Niranjan Gupta, and Chief Business Officer for India, Ranjivjit Singh, both set to leave the company on 30 April. Swadesh Srivastava currently holds the role of Chief Business Officer for EMBU.
Hero currently offers two EV models under the Vida brand — Vida V1 and Vida Z. The company has announced plans to expand its operations to the United Kingdom and Europe in the second half of 2025, with Vida Z being the first model introduced in these markets.
According to Autocar Professional, Hero is planning to bolster its presence in the zero-emission market, with a dozen new models expected over the next two to three years. These will include entry-level models, dirt bikes, and high-performance electric motorcycles.
Among Hero’s most significant projects is the development of an electric variant of the popular Splendor motorcycle. The product has been under development at the company’s CIT in Jaipur for almost two years and is slated for launch in 2027.
In collaboration with US-based electric motorcycle manufacturer Zero Motors, Hero plans to launch two electric motorcycles in the 500-600 cc category between 2026 and 2027. Additionally, the company continues to work with Ather Energy, which holds a 44 per cent stake, to advance India’s EV ecosystem. Hero is also investing in alternative fuel technologies, including hybrid and ethanol-based solutions.
Sundaram Clayton expands domestic and international operations
Meanwhile, Sundaram Clayton Limited (SCL) has commenced operations at its new aluminium die-casting facility in Thervoy Kandigai, near Chennai, Tamil Nadu. The facility, which incorporates digital manufacturing capabilities, will produce aluminium die-cast components for automotive applications, including engine parts and structural elements for EVs.
Simultaneously, SCL has expanded its operations in the United States with the installation of a 4,400-tonne die-casting machine. The company made these announcements alongside its quarterly results on 31 January 2025.
SCL reported improved financial performance, with standalone EBITDA rising to 14.7 per cent, a 1.3 per cent increase quarter-on-quarter. Consolidated EBITDA rose by 4.4 per cent to 7.8 per cent. The operating profit for Q3 FY24-25 reached INR 37.67 crore (approximately USD 4.59 million), the highest in five quarters, reflecting improved operational efficiency. Additionally, the operating profit margin improved to 7.12 per cent.
However, net sales for the quarter declined to INR 529.35 crore (approximately USD 64.56 million), the lowest in five quarters. Rising interest costs have increased by 38.70 per cent over the preceding nine months.
SCL, established in 1962, is a significant player in the automotive components sector, with exports contributing more than half of its revenue. The company serves markets across North America, Europe, and India, supplying commercial and passenger vehicle manufacturers. The commissioning of the new die-casting machine in the United States is expected to enhance the company’s ability to cater to the North American market.
With the global automotive components industry increasingly focused on lightweight solutions and sustainable technologies, SCL’s investments in new facilities position it well to meet the growing demand for EV-related components. These developments come at a time when the automotive sector is undergoing a significant transformation towards sustainable and efficient technologies.
Information source: https://www.autocarpro.in/ and https://www.marketsmojo.com/
