Why Hero Electric Losing EV Market
Why Hero Electric Losing EV Market

Why Hero Electric Losing EV Market

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In the rapidly evolving landscape of electric vehicles, Hero Electric, once a notable contender, appears to be struggling in the advancing EV market. Hero Electric Losing EV Market. The year 2022 showcased the brand’s expertise with an impressive sales figure of 98,939 units, positioning itself as a key player in the electric mobility market. However, 2023 tells a different tale: Hero Electric reported a stark -70% year-on-year growth, witnessing a sharp decline to a mere 29,800 units sold. This significant setback raises questions about the brand’s performance and prompts an exploration into the factors contributing to its diminished market share, which now stands at a meager 3%.

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As the world increasingly embraces sustainable alternatives, electric two-wheelers are gaining traction as pivotal players in urban transportation but hero electric losing EV market. Hero Electric entered this arena with promises of eco-friendly and cost-effective solutions. Despite these aspirations, the recent downturn in sales suggests a struggle to maintain relevance and competitiveness. Beyond the stark statistics, several factors may be contributing to Hero Electric’s challenges, from technological advancements by competitors to the evolving preferences of consumers.

In this article, we will delve into the reasons behind Hero Electric’s apparent decline in the EV market, digging into the complex factors that caused Hero Electric to step back from its once-strong position in the market. 

1] Limited Marketing Impact: Hero Electric’s Subdued Visibility

Hero Electric’s diminishing presence in the electric vehicle (EV) market is closely tied to its conservative marketing strategy. The company’s approach has been notably reserved in an industry where dynamism and visibility are critical. Unlike its more assertive competitors, Hero Electric’s subdued marketing efforts have resulted in a lack of brand resonance and reduced consumer awareness. The company’s limited engagement in online marketing, minimal vehicle discounts, and restrained display of specifications stand in stark contrast to the strategies employed by its competitors. A more proactive marketing stance is crucial in today’s competitive EV market, where effective communication and heightened visibility can make all the difference. Exploring the facets of this limited marketing approach reveals one of the key challenges that Hero Electric must address to regain its prominence in the evolving world of electric vehicles. 

2] Government Subsidy Hurdles: A Blow to Hero Electric’s Market Position

The second blow to Hero Electric’s market standing occurred around August 2023 when the government ceased subsidies for seven original equipment manufacturers (OEMs), including Hero Electric. The decision, prompted by unpaid dues and non-compliance with subsidy regulations, revealed that these companies had availed fiscal incentives under the scheme while allegedly violating subsidy norms. The established guidelines permitted incentives for electric vehicle production using ‘Made in India’ components, yet investigations unveiled that the seven firms had purportedly utilized imported components, leading to the subsidy withdrawal and worsening the challenges faced by Hero Electric in a market already grappling with increased competition and evolving dynamics. 

3] Fierce Competition: Hero Electric Struggles Against Other OEMs

Hero Electric’s challenges in the EV market are made even more difficult by the fierce competition from other OEMs like OLA Electric, Ather Energy, and TVS. These strong players have outperformed Hero Electric with their aggressive sales tactics, innovative technologies, appealing features, and a wide range of products. The competitive landscape has seen rivals implementing effective marketing strategies, like providing enticing discounts,  introducing cutting-edge technologies, etc., all of which have collectively overshadowed Hero Electric’s market presence. The failure to keep pace with these advancements and set itself apart in a rapidly evolving market has put Hero Electric at a distinct disadvantage, impacting its ability to retain and attract a significant share of consumers in the competitive electric vehicle sector. 

4] Competitive Pricing Strategies

Hero Electric’s market share has been impacted by its struggle to offer competitive prices in comparison to other manufacturers. The company’s pricing strategies have not aligned with consumer expectations and perceived value, leading to a potential loss of customers who prioritize cost considerations in their purchasing decisions. According to certain reports, Hero Electric faces issues with its pricing, as it is perceived to be relatively high when compared to the products offered. Individuals with a budget of less than one lakh may find it difficult to afford their scooters at this price point. The concern extends to the features and specifications offered at this specific price for example the range, top speed, etc. which customers find lacking.

In contrast, other major OEMs like Ola and Ather provide a wide range of products with diverse pricing options, discounts, and impressive specs, creating a more appealing proposition for potential customers. This pricing misalignment presents a challenge for Hero Electric in meeting the expectations of consumers and competing effectively in the dynamic electric vehicle market.

5] Issues of Performance and Range

Consumer observations regarding the actual performance and range of Hero Electric’s vehicles have adversely impacted its market position. The company’s electric vehicles are observed as having limited range or inferior performance compared to alternatives, leading to a reluctance among potential buyers to consider Hero Electric as a viable option in the EV market. The company’s failure to diversify its product range to meet the varied preferences and needs of consumers has resulted in missed opportunities to capture a broader market share and compete effectively against manufacturers offering a more extensive variety of electric vehicles.

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Soon, Ola Electric will offer 2-wheeler rentals - EV Dhandha

[…] Why Hero Electric Losing EV Market […]

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