Hero Motocorp CEO Says EV Business To Break Even In Couple Of Years

India’s largest two-wheeler maker Hero MotoCorp is aiming breakeven for its electric vehicle business in a couple of years with an average monthly sale of 25-30,000-unit level, according to a senior company official.

“This year (FY25) when we look at our EV performance, our volumes have grown 200%. Our EBITDA is at (-)95%. It is an improvement from (-)155% EBITDA in FY24…At a 25-30,000 level of volume per month, we hope that this business will break even, which in our view is a couple of years away," acting CEO Vikram Kasbekar told investors on Wednesday. 

The data from SIAM shows that Hero MotoCorp sold 58,503 electric two-wheelers under the Vida brand in FY25, which is an average of around 4,800 units per month. The retail sales have been in the range of 6-8,000 units in the last two months.

“As we look forward, our priority is to grow volumes and market share in the near term. Having said that, we will continue to improve on our profitability,” he said.

“We continue to drive the business with a lot more efficiency. What will make this profitable is our scale-up, BOM cost reduction through localization, and PLI benefit realization.”

Hero MotoCorp sells electric two-wheelers under the Vida brand and its product portfolio consists of one model, V2, with three variants – V2 Pro, V2 Plus and V2 Lite. The automaker recently unveiled a new model Vida Z, which is expected to be launched in July.

India’s largest electric two-wheeler seller Ola Electric recently said the company’s auto business is expected to break even in terms of operating profit once its average monthly sales hit the 50,000-unit mark. Ola Electric’s monthly retail sales during the last three months were in the range of 8,000 to 23,000 units.

Bajaj Auto on the other hand has said that its electric business, including two-wheelers and three-wheelers, became profitable at an EBITDA level during the second half of last financial year. The company’s monthly retails were in the range of 19,000 to 35,000 units over the last three months.

The company, which started sales of Vida in 2023, has been gradually expanding its presence across the country. Last year, Vida had a presence in more than 116 cities with over 180 dealers and 203 touchpoints.

Recently, the company announced its plans to expand its operations to the United Kingdom and Europe with the Vida brand in the second half of 2025. Vida Z will be the first model that Hero MotoCorp will sell in the UK and Europe.

Autocar Professional has exclusively reported that Hero MotoCorp is set to accelerate its mainstream zero-emission market play with plans for a dozen new models in the next 2-3 years, ranging from entry-level models to dirt bikes to high-performance electric motorcycles.

Sources said an electric variant of the popular Splendor motorcycle is one of the company's most significant projects. The product has been under development at its technology center, CIT, in Jaipur, for almost two years and could be launched in 2027.

“We had a great exit to the year with a market share of over 6%. The launches we had in the second half of the year continued to do well. In addition to that, we are planning two new affordable products in the first half, most likely in July. That will help us accelerate our growth and gain market share,” the management noted.

Meanwhile, Hero MotoCorp’s EBITDA margin, which includes both ICE and EV business, during the financial year 2025 was at 14.4%, reflecting an improvement of 40 bps from the financial year 2024. The company is targeting to maintain its EBITDA level at 14-16%.

The automaker has applied to avail the government’s Production Linked Incentive scheme for Vida Pro. The management noted that it expects the approval to come in by July and is in the process of filing the applications for other electric models.