How Hero MotoCorp Is Quietly Building a Powerful EV Position Despite VIDA Ranking Fourth

India’s electric two-wheeler market is becoming increasingly competitive, and a straightforward reading of sales numbers would suggest that Hero MotoCorp still has some catching up to do. Hero’s electric mobility brand VIDA currently trails TVS Motor, Bajaj Auto and Ather Energy in volumes. However, looking only at VIDA registrations tells only part of the story.

Hero MotoCorp is effectively pursuing a two-track electric mobility strategy: building its own VIDA business while simultaneously maintaining a sizeable strategic investment in Ather Energy, one of the country's largest electric scooter manufacturers. That combination could make Hero one of the more strategically interesting players in India’s rapidly expanding electric two-wheeler market.

VIDA Remains Fourth, But Volumes Are Rising Rapidly

Electric two-wheeler industry data for H1 CY2026 shows the following broad competitive picture:

Manufacturer	H1 CY2026 Sales
TVS Motor	2,41,087
Bajaj Auto	2,03,692
Ather Energy	1,63,681
Hero VIDA	1,02,097

VIDA therefore remains fourth among these major manufacturers.

The gap is significant. TVS sold more than twice as many electric two-wheelers as VIDA during the period. But VIDA’s direction of travel is equally important.

June 2026 registration data showed VIDA at around 21,879 units, representing an increase of more than 176% year-on-year based on VAHAN registrations compiled by AutoPunditz. Its monthly market share had moved above 11%. That suggests Hero is beginning to translate its enormous distribution capabilities into meaningful EV scale.

The Bigger Story Is Hero + Ather

Hero’s EV position changes significantly when Ather enters the equation. Ather is not simply another competitor to Hero. Hero MotoCorp is Ather Energy’s largest strategic shareholder.

Hero held approximately 29.48% of Ather Energy on a fully diluted basis as of June 30, 2026, according to disclosures surrounding its latest investment proposal. In July 2026, Hero MotoCorp approved another investment of up to ₹1,000 crore in Ather Energy. Hero’s regulatory filing said the investment would be undertaken through equity shares or eligible securities convertible into equity.

Ather subsequently approved the issuance of 76,19,047 convertible warrants at ₹1,260 each to Hero MotoCorp, subject to the necessary approvals and terms. The investment demonstrates that Hero views Ather not merely as a financial holding but as an important part of its longer-term electric mobility strategy.

An Interesting Way to Look at the Numbers

FY2026 industry volumes referenced in the market data show:

Manufacturer	FY2026 Sales
TVS Motor	3,67,501
Bajaj Auto	3,02,674
Ather Energy	2,60,070
Hero VIDA	1,48,473

Taken individually, VIDA remains a distant fourth. But VIDA and Ather together accounted for approximately 4.09 lakh electric two-wheelers during FY2026.

That is higher than TVS Motor’s approximately 3.68 lakh units.

The comparison should be interpreted carefully: Hero does not own Ather outright, and Ather remains an independently managed and separately listed company. Therefore, Ather volumes cannot simply be counted as Hero MotoCorp sales. Nevertheless, strategically, the numbers illustrate something important. Hero has exposure to two distinct EV businesses serving overlapping but somewhat different customer groups.

Two Brands, Two Different Approaches

The positioning of VIDA and Ather is also complementary. Ather established itself initially around technology, performance, connected features and premium electric scooters such as the 450 range.

The subsequent arrival of the Ather Rizta widened the company’s appeal towards family scooter customers, helping Ather move deeper into the mainstream market. Ather finished FY2026 with approximately 17.1% electric two-wheeler market share, according to an industry report published by the company. VIDA, meanwhile, appears increasingly focused on affordability, accessibility and Hero’s vast distribution ecosystem. The VX2 has become particularly important to that strategy.

VIDA VX2 Could Be Hero’s Mass-Market EV Trigger

Hero’s original VIDA products were relatively premium offerings.

The VX2 moves the brand closer towards India's mainstream scooter market, where pricing, charging convenience and dealer accessibility can matter more than outright technology specifications. The current VX2 family includes multiple battery configurations ranging from 2.2 kWh to 4.4 kWh, with certified riding ranges extending from around 93 km to 187 km depending on the variant.

VIDA has also retained removable-battery technology on several versions. That could be particularly relevant in dense Indian cities where many scooter owners live in apartments without dedicated parking chargers. Instead of requiring every customer to install home charging infrastructure, removable batteries allow users to carry the battery indoors for charging.

Battery-as-a-Service Adds Another Lever

Hero has also experimented with Battery-as-a-Service (BaaS) on the VX2.

The approach separates part of the battery cost from the initial vehicle purchase price, lowering the upfront entry barrier while charging customers for battery usage through a subscription or usage-linked structure.

This is strategically significant because battery packs remain one of the most expensive components of an electric scooter. A lower acquisition price could make an electric scooter easier to compare with popular petrol scooters — particularly for customers who focus heavily on the initial purchase cost. Whether BaaS becomes a mainstream purchasing model remains to be seen, but it provides Hero with another pricing tool as electric scooter competition intensifies.

Hero’s Biggest Weapon May Eventually Be Distribution

TVS and Bajaj enjoy one advantage that electric start-ups have spent years trying to replicate: nationwide dealer and service infrastructure. Hero has this advantage at an even larger scale in the conventional two-wheeler business.

The challenge was never whether Hero could build dealerships. The challenge was integrating VIDA into the Hero ecosystem without weakening the premium, technology-oriented positioning with which the electric brand began.

That strategy appears to be evolving. Customers can increasingly access VIDA through VIDA hubs, experience centres and Hero dealerships, significantly increasing the potential reach of the brand. VIDA's own website now explicitly directs buyers to VIDA Hubs, Hero dealerships and Experience Centres for test rides. If VIDA ultimately becomes available across a substantial portion of Hero’s traditional network, distribution could become one of the company’s strongest competitive advantages.

Charging Infrastructure Is Becoming Another Shared Advantage

Hero and Ather also share another strategic connection: charging infrastructure.

Ather has spent years developing Ather Grid, while Hero and Ather have collaborated on interoperable charging initiatives.

Ather’s FY2026 annual report highlights the Light Electric Vehicle Acceleration Forum, co-founded by Ather, Hero MotoCorp and IPEC India, which aims to develop standardised charging infrastructure for electric two-wheelers. VIDA currently says customers have access to more than 5,900 public fast-charging points.

For consumers, interoperability could ultimately matter more than which manufacturer owns a particular charging point. A broader compatible network reduces one of the biggest barriers to electric two-wheeler adoption.

Hero Is Essentially Hedging Its EV Strategy

Hero’s approach can therefore be viewed as a strategic hedge.

If VIDA scales rapidly, Hero directly participates through its wholly controlled electric mobility business. If Ather continues gaining market share, Hero participates as a major shareholder.

And if the market divides between value-focused mainstream scooters and technology-focused premium products, Hero has exposure to both sides. This is quite different from relying entirely on a single electric scooter brand. It also reduces the risk associated with predicting exactly how India’s EV market will evolve.

But There Are Important Risks

Hero’s strategy is not automatically a winning one. VIDA still needs to prove that its recent growth can be sustained. TVS and Bajaj are simultaneously accelerating production and expanding their electric scooter ranges.

Bajaj, for instance, has said demand for Chetak has exceeded supply and is expanding monthly Chetak production capacity from around 50,000 to 60,000 units. Meanwhile, Ather remains an independent company. Hero cannot treat Ather's entire business as its own operating EV division despite being a major shareholder.

Competition within the broader Hero–Ather ecosystem is therefore inevitable. Ather and VIDA will frequently chase the same urban scooter buyer. The question is whether Hero sees that overlap as cannibalisation — or simply as increasing its overall exposure to electric mobility. The latter appears more likely.

India’s E2W Market Is Growing Fast Enough for Multiple Winners

The broader market provides room for such a strategy. India recorded roughly 1.39 million electric two-wheeler registrations during FY2026, representing growth of around 21% over the previous financial year, according to industry registration data.

The competitive order has also changed substantially.

TVS and Bajaj have emerged as major EV players, Ather continues to expand, VIDA is gaining volumes and several smaller manufacturers are building new niches. The dramatic reshuffling of market leadership demonstrates that India's electric scooter market remains far from settled. That creates an opportunity for Hero.

Hero MotoCorp’s wider EV strategy combines its own VIDA electric scooter business with a significant strategic stake in Ather Energy.

Auto Punditz Take

Hero MotoCorp may not currently lead India's electric two-wheeler sales charts, but judging its EV strategy solely by VIDA volumes misses the larger picture. The company is effectively building two routes into the electric mobility market.

VIDA gives Hero direct ownership of a mass-market EV business backed by one of India's largest two-wheeler distribution ecosystems. Ather gives Hero strategic exposure to one of India's strongest EV-native technology brands.

The ₹1,000 crore additional investment proposed in Ather reinforces that this is unlikely to be a temporary financial arrangement. The more interesting question, therefore, may not be “When will VIDA become India's No.1 electric scooter brand?”

It may be: “How much of India's electric two-wheeler market can ultimately sit within Hero MotoCorp's wider sphere of influence?”

If VIDA continues scaling while Ather maintains its position among India's top three electric two-wheeler manufacturers, Hero could become one of the biggest beneficiaries of India's EV transition — even without VIDA ever occupying the No.1 position on its own.