Hero Electric on Thursday said it will diversify into premium segment under the A2B brand as it aims to create differentiated brands to cater to multiple segments in the electric mobility space. Under the A2B brand, the company will introduce a diverse portfolio of premium products including electric bikes, scooters, and other new variants in the category. "We are embarking on a de-aggregation strategy with specific brand offerings in different segments. This tactical move aims to focus on our traditional turf with the Hero Electric brand, while allowing us to break into newer segments as competition builds up in this sector," Hero Electric MD Naveen Munjal said in a statement.
Hero Electric CEO Sohinder Gill said the company believes that differentiation is key to market dominance.
"Going forward we will enter categories under specialist brand entities to bring focus to the market segments they represent, complementing the Hero brand as a legacy player in the mass mobility segment," he stated.
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.
"The Indian market is ripe for e-mobility exploration, and we are perfectly positioned to meet the emerging demands, including those from the premium segment," Gill said.
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.