NEW DELHI:  India’s largest two-wheeler manufacturer- Hero MotoCorp on Tuesday announced investment of up to Rs 10,000 crore in the next 5-7 years to develop new products, alternate mobility solutions, ramp up its manufacturing facilities and network expansion. The investment announcement which includes Hero’s entry into electric vehicle segment comes at a time when rival two-wheeler makers- Bajaj Auto and TVS Motor recently launched their first electric two-wheelers with clear roadmap to dominate this space.

Hero MotoCorp is yet to launch its first electric product or establish itself as a serious premium segment player where Bajaj, TVS have partnered with global giants such as Triumph and BMW to challenge market leader Royal Enfield. Even in scooter segment, it does not have a presence like Honda two-wheelers. Pawan Munjal, Chairman and Managing Director - Hero Motocorp, said that global mobility space is undergoing rapid transformation due to multiple factors, including the emergence of tech-based aggregators and ride share start-ups and regulatory changes.

“Changing times call for a change in structure. So, to address the emerging trends, we have created a separate vertical — the emerging mobility business unit that is working on a range of mobility solutions for the future,” said Munjal. He informed that Hero will soon cross the milestone of 10 crore units in cumulative sales since 1985 and now the time is right to shift gears to stay in business. “We have to revitalize our vision, mission in a manner that makes us completely future ready”, Munjal added.

Like the rest of the industry, Hero’s sales have been impacted by the prolonged slowdown. In the April 2019-January 2020 period, the company has sold a total of 5,434,577 units, which is down 15.86 per cent on year-ago sales (6,458,857). The company also showcased three products with Bharat Stage VI engines today. The BS-VI version of Glamour 125 was launched at a starting price of Rs 68,900 and the Passion Pro 110 at Rs 64,990.