Niranjan Gupta, the CEO of Hero MotoCorp, will move on from the company on 30th April 2025. He is being replaced by Vikram Kasbekar, an old-time senior leader at the company and, till recently, the Executive Director (Operations). Kasbekar is the designated acting CEO, indicating that Hero may be on a CEO hunt.
Gupta was the CFO at Hero MotoCorp since 2017 before being elevated to CEO in March 2023. Before that, Dr. Pawan Kant Munjal, the promoter and executive chairman, helmed the company.
Ranjivjit Singh, the Chief Business Officer, is also leaving the company. Singh joined Hero MotoCorp as CMO in 2021, elevated to the newly created position of Chief Growth Officer in 2022, and finally, as Chief Business Officer.
The company also announced the elevation of Ram Kuppuswamy, the Chief Procurement Officer, to the expanded role of Chief Operations Officer (COO) – Manufacturing. Ram would oversee all plant operations and quality functions.
Also elevated is Ashutosh Varma, Hero’s National Sales Head – India Business Unit (IBU) to Chief Business Officer (CBO), replacing Ranjivjit Singh.
Spinning off Vida
The most significant announcement comes from the electric mobility business unit, which operates under the Vida brand name. Hero MotoCorp is spinning it off as an independent entity. Dr. Pawan Kant Munjal, the executive chairman and promoter of the group, will act as the mentor to the newly formed business unit. There is no clarity on Vida’s new leadership, as Dr. Munjal would only be the mentor.
Vida is struggling
Vida has been doing badly compared to incumbents like TVS and Bajaj Auto and startups like Ola Electric and Ather Energy.
Really bad, we must say. This is the registration data for electric scooters Jan 2025:
With significant investments in Ather Energy, a token angel investment in Ola Electric (from the Munjal family office), and a strategic investment in Zero Motorcycles, Hero MotoCorp has substantial interests in electric mobility. It’s just that its own electric brand has fallen through the cracks.
Hero MotoCorp is listed as a promoter in the Ather Energy DRHP. The Bengaluru-based electric scooter startup is heading for an IPO in the coming weeks, and Hero MotoCorp holds 37.2% equity in Ather Energy.
InsightEV – Global Electric Mobility
Hero MotoCorp also has a significant strategic investment in Zero Motorcycles. In September 2022, the company invested USD 60m in the Scotts Valley, CA-based manufacturer of electric motorcycles. With Zero Motorcycles not doing too well, the investment has assumed a strategic flavor, with both companies working on one mid-level electric motorcycle platform with 3-4 different offerings.
Meanwhile, the existing Vida portfolio comprises one scooter platform with three variant models.
Compared to Bajaj Chetak, Ola Electric, and Ather Energy offerings, Vida offers portable batteries. Since its launch, Hero’s strategy for Vida has been reactionary. It started by offering Vida scooters only at selected outlets, then set up exclusive Premia stores to sell Vida, Hero’s premium motorcycles, and even Harley-brand motorcycles. Hero is the exclusive franchise for Harley in India.
Impact
Hero is the largest two-wheeler manufacturer in India and the second largest in the world. However, Honda has been reducing the gap, and it may be a matter of months before Hero loses market leadership. Hero’s traditional strength has been the 100 cc – 125 cc commuter motorcycle segment, where it has a commanding position. However, with the Indian market increasingly moving towards higher engine sizes, Hero’s sales volumes are under pressure. In every other segment – premium motorcycles, commuter scooters, and lifestyle motorcycles, Hero has been a laggard.
Vida needs some attention to be a serious player in the fast-growing electric commuter scooter market. The overall market is hovering around 100k units a month, and Hero’s electric division has a less than 2% market share. Serious work is needed on the product front to make Vida a viable business. Direct attention from the top boss may be a good thing.