In addition to Bharat Petroleum, Hero Motocorp has now partnered with Hindustan Petroleum to establish EV charging infrastructure. I think it has done the ground work very well and is taking each and every step carefully while planning to introduce it’s electric vehicle.
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I am keenly watching the battery swapping ecosystem development from Hero and its partner gogro. In my view a stable EV product with removable battery is a game changer (having experience it in China) provides the battery swapping could be effectively developed.
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Thats probably the only way EV can survive. And Hero has done a good job in creating this ecosystem. With partnership from HPCL and BPCL, the battery swapping is expected to be as easy and quick as refueling. Really excited to see how it’s executed and at what scale.
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Hero MotoCorp announced its plans to enter the Philippines for which it has partnered with Terrafirma Motors Corporation for assembly and distribution of its vehicles.
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Hero MotoCorp said that it has registered double-digit growth in retail sales during the festive season. The company said that retail sales increased by over 20% in the festive period in FY22, vs the corresponding period.
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Hero MotoCorp M&A, strategy head resigns; CFO Niranjan Gupta takes charge | Mint (livemint.com)
Two-wheeler maker Hero MotoCorp on Friday announced the resignation of its head of strategy, mergers and acquisitions, and global product planning Malo Le Masson. The company said that he has decided to pursue opportunities outside.
Chief Financial Officer Niranjan Gupta has been given additional charge of heading strategy, mergers and acquisitions for the company. He has been CFO for the past six years.
Executive Director Vikram Kasbekar has been given the responsibility to head the key function of global product planning as an interim charge, said Hero MotoCorp in its regulatory filing.
More churn. But they need dedicated folks in these roles.
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Though the company has received some flak in terms of being a laggard in ICE space, they seem to put their weight on electric vehicles.
For a long term play spanning more than 5 years I am assuming that Hero has a good chance of dominating the electric two wheeler space, along with it’s 34% stake in Ather Energy. So, my valuation has a lot of bias towards the EV segment.
There are a few things that stand out wrt Hero’s EV initiatives:
- Hero decided to start from the premium segment and work its way down. This is evident in their pricing point. I perceive this as management’s commitment towards making this happen. I am also happy that they did not succumb to price war and margin erosion (need to see upcoming results for financial performance)
- The features on Vida are quite good and seem to have really introspected customer needs (regenerative braking, battery swapping, smart accelerator etc.). The key differentiation from customer POV is removable battery.
- Their partnership with gogoro could decouple charging station and battery infra while Hero can focus on that they do best - build quality 2 wheelers. Note that this is not an exclusive deal. However, Hero made a right move after looking at Taiwan.
- Viva is just launched in 3 cities. They are yet to scale their operations and dealerships. It is going to be a highly competitive market and dealership network will be a key aspect.
So far, the company seems to move in right direction in EV space. I haven’t had experience trying out any of the EV vehicles. But, from the review, Vida is not bad in the core aspect. Just some manufacturing aspects on the panel finish, alignment etc. need to be ironed out.
The market has chosen not to reward the stock and it has been declining over last 5 years. Need to see if this is a turn around in coming years, and IMO, it largely depends on their EV execution.
Disc: Invested
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Mr. Niranjan Gupta has been appointed CEO. Niranjan Gupta who was CFO is the new CEO.
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The above news has to be considered with the following statement:
Pawan Munjal will continue as executive chairman and a whole-time director on the board.
How much freedom Mr.Niranjan Gupta have in the organisation is a question that only time will answer.
Quoting from The Essays of Warren Buffet :
“Good jockeys will do
well on good horses, but not on broken-down nags. Both Berkshire’s textile business and Hochschild, Kohn had able and honest
people running them. The same managers employed in a business
with good economic characteristics would have achieved fine
records. But they were never going to make any progress while
running in quicksand.”
I think in the current context we have a fair idea on what or who the quicksand is.
https://twitter.com/Nupurkunia/status/1654298439898005504?t=cwKEYH8IkOlnyXTKjy0gzA&s=19
Raw material price correction & price hike & small volume growth helped ebidta margin improvement.
Eagerly looking for the scale up of Vida this year.
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PPFAS has sold its entire stake in Hero Motocorp.
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Exchange has sought clarification from Hero Management over reports of enquiry initiated by Ministry of Corporate Affairs on fund diversions; this is the continuation of the IT raids in March last year
Not received any such communication is Hero’s response.
Hero-Motocorps-Debut-HD-X440_compressed.pdf (387.3 KB)
A presentation covering Hero Motocorp’s entry into the premium bikes segment with HD X440.
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