Hero VIDA VX2: Hero MotoCorp has come out with a new electric scooter, VIDA VX2, that is set to make electric travel more affordable. Similar to MG Motor, Hero is employing the Battery-as-a-Service model with the goal of making electric two-wheelers affordable for more people. In this model, users are not required to pay for the battery when they buy the scooter. Instead of including the battery in the price, they can opt to pay for it separately according to usage, which ensures the introductory price remains extremely low.
Price Difference with Battery Rental
Hero VIDA VX2 comes with two variants. If you go for the Battery-as-a-Service option, you can own this scooter for ₹59,490. However, if you prefer purchasing it along with the battery, then its cost increases to ₹99,490. This implies that the customers can save nearly ₹40,000 by leasing the battery. The company believes this is a suitable opportunity for new customers of EVs or those who make daily commutes to experience an electric scooter at a lower cost.
Hero’s Market Strategy
Experts feel Hero’s Battery-as-a-Service concept might propel its electric vehicle market share ahead. The company drew inspiration from MG Motor, which increased its EV market share from 16.5% to 41% in three months after introducing a similar scheme. Hero has also set up more than 3,600 charging stations and over 500 service centers across India. This robust support network can enable owners to utilize their electric scooters without any concern of charging or servicing issues.
Battery Rental Challenges
While Battery-as-a-Service seems like a good idea in the short term, experts caution that it might not remain affordable for all in the long run. People who travel long distances daily might realize renting a battery ends up being more expensive in the long run compared to purchasing one. However, if Hero’s strategy gains popularity, then numerous other companies might start introducing something similar to battery rental schemes. This transition can usher in a fresh tide of competition and development in India’s electric scooter industry.