The current condition of Hero Electric:
There’s a time when Hero Electirc used be the top contender in the electric 2-W business and their sales features were like 5000-6000 units per month. However, this speed of sales halted when government tighten the FAME-2 regulations and discarded scooter like Hero Electric from giving any subsidies. From then onwards the sales of Hero electric started dipping and arrived at a situation where the monthly sales of Hero Electric is not even touching 800/month.
What Hero Electric Expecting with this Merger:
It’s isn’t that Hero Electric never sold electric bicycles but earlier the products they had were all of low quality and most likely were imported. But now Hero Electric want to sell some good quality electric bicycle. Now that they are looking to loose their position in the market as an electric scooter sellr company want to re-establish itself and contribute positively into the EV market.
Here’s what CEO of Hero Electric has to say about this merger:
“While the Hero Electric brand continues to be the bedrock of our basic E-mobility thrust, we intend to invest in new brands for specific market categories,” Now that we don’t have any strong brand in the electric bicycle sector, Hero Electric can emerge as a positive brand in this market segment.
Future Plans and How A2B will contribute:
There’s no doubt Hero electric has played a pivotal role in giving our EV industry the initial push it needed but I personally believe it came down shattering due to its short term gain practices. Well it doesn’t matter how you failed what matters is how you bounce back, so this plan of Hero electric for making high quality electric bikes is looking like the one which can bring them back into the game.
A2B will bring in fresh inventory of new and high quality electric bicycles which will be reliable and made specifically for the Indian audience and Indian conditions. The A2B will build cycles with more features, high grade batteries, highly intelligent BMS and robust batteries.
Here what the MD of Hero Electric has to say about this collaborations and the future of Hero Electric:
“We are embarking on a de-aggregation strategy with specific brand offerings in different segments. This tactical move aims to focus on our traditional turf with the Hero Electric brand, while allowing us to break into newer segments as competition builds up in this sector.”