Following the industry wide and to an extent the sector wide trend of premiumization to drive margin expansions, Hero Electric has stated on Thursday that it is diversifying into the premium segment through the A2B brand to create differentiated brands to cater to multiple segments in the electric mobility space.
Under this brand the company will offer a whole host of premium electric bikes, scooters and even new variants of products.
Hero Electric CEO Sohinder Gill said the company believes that differentiation is key to market dominance. He said the company will embark on a de-aggregation strategy with specific brand offerings in various segments.
He added that the objective of this tactic is to focus on traditional turf with Hero Electric Brand while allowing them to break into new segments to acquire market share and build competition.
He says in the future they will enter categories under specialized brand entities to bring focus and expertise to the segments they represent and also to complement and support the Hero brand as a whole.
The electric two-wheeler market may face challenges in the short term, but with the increasing focus on sustainability and the transition towards cleaner transportation, it does have significant growth potential in the mid to long term.
Gill stated that the Indian market is ripe for e-vehicle mobility expansion exploration and that they are well positioned to meet emerging demands including the premium segment
Hero Electric currently sells a wide range of electric scooters. The company has a manufacturing unit in Ludhiana and a shared facility in Pithampur, Madhya Pradesh through a strategic partnership with the Mahindra Group.
