Looks like the much anticipated EV launch will be under the Vida brand.
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Crude price above $118 per barrel already due to Russia Ukraine crisis. The day voting is complete in UP, petrol diesel price is going to rise. Todayâs news was showing price needs to be increased some 15 per litre to break even. State and Central Govt might reduce excise duty and OMCs will be asked to take the loss.
EVs are inevitable now even at the risk of cannibalising own petrol scooters else someone like hero electric, Okinawa, Ola, bounce will eat your pie.
Bajaj and TVS have already launched or planning to launch EV scooter. Hondas mkt dominance with Activa range will come to an end if they donât introduce an EV version soon.
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How much belief do you have in current Hero Motocorp plans regarding EV? Arenât they lagging too behind in the race, also the new EV launches arenât as hyped as it was for Ola Electric and other competitors. The company might have to push a lot harder than it currently is doing?
Disc: Invested and Curious
Hero Motocorp has significant stake in Ather energy which is the premium tier. Ather has the technology, Hero Moto has experience in sales, marketing, distribution, logistics and everything else. In many technologies, first mover need not be a good thing. Apple never were a first mover in any of the things theyâre excelling at. EV is still at a nascent stage with itâs own challenges as discussed in this thread many times. So what Iâd say the field is ploughed well by many first movers and itâs a good time for the incumbents to disrupt the disruptors.
Though the new EV scooters are quite economical for onetime and lifetime ownership cost, still they lack the brand which people have trust. People doubt how long the battery will last and what will be the replacement cost, resale value, etc. This is where the incumbents have a big advantage, they can bring in the trust factor.
On a(n) (un)related note:
Yamaha is introducing EV scooter which is going to have lithium ion with battery swappable technology. This could be a very good strategy giving battery as a service.
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Unrelated to thread. I feel Apple was first mover in many. Starting with Computers with creative Graphics interface, ipod to first true touch based smart phone they were first movers. Each of them excelled for a season or still.
Disc: Recently invested in Hero moto Corp with a small allocation (1.5% of PF) at 10% above cmp. Bullish based current changes in strategy esp EV.
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I have seen the swappable battery tech play in Shanghai and its going to be a disrupter when setup right. Imagine driving around on a EV scooter with more battery swapping stations than petrol. It will take less time to swap then to fill petrol. economy of scale comes in with right incentive driving the captive clients.
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I only see one challenge with this option â it will be capital intensive. For every one scooter, there would be a need to maintain 2-3 batteries to ensure no stockouts.
Disc. Buying a share daily since last 2-3 months.
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These are manufacturer dispatch figures, and not a good way to measure two-wheeler performance because OEMs do many things to grease this.
OEMs offer incentives to dealers to take extra vehicles than they need, or forgo interest, or just ask them to take them for now.
And I know for a fact that has been happening for Jan, Feb and ongoing in March at various OEMs. Actually, the fact that OEMs are in degrowth even with this shows how badly the 2W market is right now in the country.
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Hero Electric has started a blitzkrieg on manufacturing expansion, collaborations and press releases off late.
Now, as per this article, their current production capacity is 250000. Even with their current monthly sales (which has double over previous months) of 7000 units, they cannot utilize 250000 units per annum.
Plus, Hero Electric doesnât have the financial muscle like Hero Motocorp. They are already utilizing heavy debt. What is going on here? Also, if Hero Electric does turn their business around (being the market leaders currently), Hero Motocorp will have a tough time.
Even Ather sales have slowed post dispatches by OLA.
link to the february 2022 sales figures. One can see the annual jump for all evâs.
Why this is important to Hero motocorp is because a bad brand name in Hero Electric and the ongoing family feud can be a huge negative for Hero motocorp. Many people still think that they are one company.
About 24-26 locations being raided. This seems to be a first in the companyâs history.
Does this have anything to do with the Family rivalry? The electric scooter was to be launched in March. This was delayed to may. The last article just mentioned soon.
I donât see why it would have to do with competition from Hero Electric. Very surprising news given the track record of the company.
Eletric Scooter is expected in dealer hands in July.
This is bad news. It means either IT accounts could be not proper or the company and promoter rubbed the govt the wrong way. The share price was resilient though. However Iâm completely exiting my position and will re-enter after the dust settles, even if it is at a higher price.
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1000cr bogus expenses found according to this report.
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Some big name investors like LIC, Parag Parikh AMC, WGI global have invested in Hero Motocorp.
Additionally, the company is regularly audited by BSR and co LLP apart from regular public scrutiny.
Finally, the company or its promoters have never been in any controversy before this came up.
But, Hero Motocorp is fighting a losing war where its no.1 ranking in market share is shrinking. Also, Hero has been extremely slow to bring in new products to the market. Itâs profit margins have been squeezed very much off late. Their electric scooter is also delayed by a couple months.
POssible reasons why IT raids happened are
- They have been wanting to launch their EV which is not in the interest of Hero Electric. Hero Electric is making lots and lots of noise effecting the Munjal family name. Also, Hero Electric has been dragged to court by Honda for design infringement. With Ola and Ather racing the sales charts, It is but time that Hero Electric, just like Hero moto loses its no.1 ranking.
- Hero motocorp recently declared its intention of listing Hero Fincorp. Vested interests maybe at play here.
- Political conflicts or disagreements.
In India, IT raids regularly used as a weapon for attacking a person or a companyâs reputation. How Mr. Pawan Munjal and Hero Motocorp react to this new will decide the future course of action.
Another small bad news is also doing the rounds.
First the family EV issue, then the IT raids and then the small bad news of litigation with Brains Logistics. Hero can make a comeback like Infosys did in 2019 which is only possible with the highest levels of corporate governance standards.
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Clarification statement issued by Hero Motocorp: https://www.bseindia.com/xml-data/corpfiling/AttachLive/a459e65e-34c1-4b65-a37c-504500f767d8.pdf
Denying all the speculations around the press reports.
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I am too surprised with the events.
I read the reports form money life too.
1000 crore claimed it not given statement.
Good Article Highlighting both side.
Hero News on money life