Hero MotoCorp chairman and CEO Pawan Munjal is gearing up to enter and lead the two-wheeler EV market despite being a late entrant into a crowded field that includes competing against his nephew's company
Pawan Munjal, chairman and CEO of Hero MotoCorp
Image: Jamel Toppin for Forbes India
Hero MotoCorp’s motorcycles and scooters adorn the lobby of the company’s research facility in Jaipur, 270 km south of New Delhi. Taking pride of place among the models is the iconic CD 100, the first motorcycle launched in 1985 by its former joint venture Hero Honda with Japan’s Honda Motor Co. The success of the CD 100 and other models helped make New Delhi-based Hero the world’s largest maker of motorcycles and scooters by units in 2001. Today, Hero still has a commanding share of 37 percent (by units) of India’s two-wheeled market, well ahead of Honda, which now has 25 percent and competes against its former partner in India.
But Hero’s commanding position could be threatened by the shift to electric vehicles (EVs). While electric two-wheeled transport is still a tiny fraction of India’s market—143,837, or just 1.3 percent of total annual two-wheeled vehicle sales in the year to March—that figure has grown over four-fold in three years.
The government is also underwriting the market’s growth. It increased existing consumer subsidies on two-wheeled EV prices by 50 percent and doubled the cap on this incentive to 40 percent of the price, bringing the formerly high prices of two-wheeled EVs more in line with similar gas-powered models. In mid-September, the government announced $3.5 billion in incentives to ramp up the local production of batteries and hydrogen fuel cells. These moves are all in support of the government’s declared goal to have at least 30 percent of all new vehicles sold in India—including two-wheelers—be EVs by 2030.
(This story appears in the 19 November, 2021 issue of Forbes India. To visit our Archives, click here.)