India’s Hero MotoCorp, one of the world’s largest producers of motorcycles and scooters, plans to start selling electric scooters to Britain and at least two other European countries next year, its first foray into developed markets. Hero, which also makes Harley-Davidson motorcycles in partnership with U.S. companies, may also export larger vehicles with traditional gasoline engines to Britain and other European markets, Chief Executive Niranjan Gupta told the Financial Times. Indian officials say India and Britain are making progress on a free trade agreement that would reduce tariffs on goods, including in the auto industry. “Research shows that consumers are excited to receive this product, both in the U.K. and Europe,” Gupta said in an interview at Hero’s headquarters in New Delhi. Hero will sell the electric scooters under its Vida electric brand. Gupta said Britain plans to launch the electric scooters by mid-2025. Hero, which already exports to more than 45 countries in Asia, Africa and Latin America, has also announced plans to sell electric scooters in France and Spain. In 2020, India updated its vehicle emissions standards to bring its domestically produced cars in line with regulations in other global markets such as the European Union.
“Now the global market is open to us (India) to export goods,” said Hemal Thakkar, director of Indian analytics firm Crisil, a subsidiary of S&P Global in Mumbai. “With tariffs on Chinese imports rising, there are definitely opportunities for Indian producers there,” he said.
Hero, controlled by the Munjal family, dominates India’s motorcycle and scooter market. However, its market share has declined in recent years as new groups such as Ola Electric enter the market and more Indian consumers buy larger and pricier motorcycles than Hero’s 100cc scooters.
To build a profitable business in Britain and Europe, however, Hero needs to offer more expensive motorcycles, such as its Mavrick model, analysts said.
“Hero dominates the 100cc motorcycle market, which is important from a developing market perspective,” said Jinesh Gandhi, head of research at Mumbai-based Ambit Capital.
“But for Europe and the UK, there needs to be more premium motorcycles, and Hero has not yet succeeded in that space.”
Gupta said Hero “can look at options” to export its large motorcycles with conventional engines to the UK and other developed countries.
He said Harley-Davidson exports to the UK would depend on a deal with the Milwaukee-based company, as their current agreement restricts sales to India.
“I wouldn’t speculate,” Gupta said. However, he said the company is evaluating exporting the large Mavrick motorcycle, which uses the same engine platform as the Indian-made Harleys, to developed markets such as the UK.
