Hero MotoCorp to Launch Affordable Vida EV Under ₹1 Lakh; Plans ₹1,500 Cr Investment

Hero MotoCorp is officially shifting gears to dominate the mass market electric vehicle (EV) segment. Following a stellar financial performance in Q4, the company has announced a roadmap to launch a budget friendly electric scooter under the Vida brand, priced below ₹1 lakh, with an expected launch date in August 2026.

Budget-Friendly Vida: The Shift to Fixed Batteries

In a strategic move to undercut competitors like Ola Electric and TVS, the upcoming Vida model (widely speculated to be the VX2 or a new V-series variant) will move away from the brand's signature removable battery technology.

By opting for a fixed battery pack (likely around 3.8 kWh), Hero aims to slash manufacturing costs and pass those savings directly to the consumer. This "fixed-pack" strategy targets the daily urban commuter who prioritizes a lower upfront purchase price over the flexibility of swappable batteries.

Massive ₹1,500 Crore Capex for FY27

Hero MotoCorp’s aggressive EV push is backed by a massive ₹1,500 crore capital expenditure (Capex) plan for the 2026-27 financial year. This investment will be utilized for:

• Capacity Expansion: Doubling the EV production capacity at the Sri City plant in Andhra Pradesh from 3.3 lakh to 6.6 lakh units annually.

• New Product Development: Beyond the budget scooter, Hero is readying two electric motorcycles the Lynx (off-road) and the Ubex for 2027.

• Premium Segment: Scaling production for the Xoom and Destini internal combustion engine (ICE) scooters.

Record Profits Fueling the Future

The expansion news comes on the heels of Hero MotoCorp’s impressive Q4 financial results, where the company reported a net profit of ₹1,401 crore, a 30% year-on-year increase. With a current EV market share of 10.3%, the company is leveraging its strong cash flow to challenge the current market leaders.

"Our focus is now on scale and affordability. By doubling our capacity and entering the sub-1 lakh segment, we are making electric mobility a viable reality for the everyman," a company spokesperson indicated during the earnings call.