Hero MotoCorp Spins Off EV Business as an Independent Unit from February 2025

Hero MotoCorp, India's largest two-wheeler manufacturer, has announced a significant restructuring of its electric vehicle (EV) and Emerging Mobility Business Unit (EMBU). Effective February 1, 2025, the EMBU will operate as a fully independent entity. This strategic move aligns with the company’s goal of accelerating innovation in the EV sector while reinforcing its commitment to sustainable mobility solutions.

Transition to an Independent EV Unit

The decision to spin off the EMBU reflects Hero MotoCorp’s broader vision of becoming a key player in the electric mobility space. The EMBU, initially established in 2019, will now function as a separate business unit under the mentorship of Executive Chairman Dr. Pawan Munjal. The transition is aimed at fostering advanced technological collaborations across Hero Tech Centre Germany (TCG) and Hero Centre for Innovation and Technology (CIT).

According to Dr. Munjal, this move will empower the unit to lead the EV transformation by focusing on cutting-edge product development and next-generation mobility solutions. The company intends to establish new benchmarks in the industry through strategic synergies across its global R&D centers.

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Leadership Changes and Management Reshuffle

In conjunction with the restructuring, Hero MotoCorp has announced a series of leadership changes.

• Niranjan Gupta, the current Chief Executive Officer (CEO), will step down from his role on April 30, 2025, to explore other career opportunities.

• Vikram Kasbekar, currently the Executive Director of Operations, will assume the role of acting CEO starting May 1, 2025.

• Ram Kuppuswamy, presently serving as Chief Procurement Officer, will be promoted to Chief Operations Officer (COO) - Manufacturing, overseeing plant operations and quality control from April 1, 2025.

• Ashutosh Varma, currently the National Sales Head for the India Business Unit (IBU), will be elevated to Chief Business Officer (CBO) - IBU, effective May 1, 2025.

• Jyoti Singh, who presently leads HR for Research & Development, will transition to Deputy Chief Human Resources Officer on February 1, 2025.

These management changes aim to streamline operations and enhance leadership effectiveness as the company accelerates its push into the EV market.

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Hero’s Growing Presence in the EV Market

Hero MotoCorp has been steadily expanding its EV footprint through its Vida brand. The company introduced the Vida V1 and Vida Z electric scooters in 2023 and has since expanded its dealer network to over 180 locations across 116 cities. With a relatively modest market share in India’s EV segment, the company is now taking aggressive steps to strengthen its position.

As part of its international expansion strategy, Hero MotoCorp plans to launch the Vida Z electric scooter in the United Kingdom and Europe by the second half of 2025. The move underscores the company's commitment to global markets and its ambition to establish itself as a leader in electric mobility beyond India.

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Future EV Strategy and Key Developments

Hero MotoCorp has ambitious plans for the EV segment, with reports indicating the development of a dozen new electric models over the next two to three years. These models will range from entry-level scooters to dirt bikes and high-performance electric motorcycles.

A key highlight of the company’s roadmap is an electric version of the Hero Splendor, one of India’s most popular commuter motorcycles. Currently under development at Hero's CIT facility in Jaipur, this electric variant is slated for launch in 2027.

Furthermore, Hero MotoCorp has a strategic partnership with US-based Zero Motorcycles, with plans to introduce electric motorcycles in the 500-600 cc category by 2026-27. The company is also collaborating with Ather Energy, in which it holds a 44% stake, to enhance India's EV ecosystem.

Beyond electric mobility, Hero MotoCorp is investing in alternative fuel technologies, including flex-fuel and ethanol-powered vehicles. The company is also exploring hybrid technology solutions for long-term sustainability.

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Conclusion

The transformation of Hero MotoCorp’s EMBU into an independent entity marks a pivotal step in the company’s electric mobility journey. With an aggressive product pipeline, strategic global expansion, and significant leadership realignment, Hero MotoCorp is positioning itself to be a formidable player in the EV sector. The company’s focus on innovation, partnerships, and sustainability will be instrumental in shaping the future of mobility in India and beyond.

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