Why Hero Electric Is The Best Electric Vehicle (EV) Franchise In India 2024
Written By: Shruti Agrawal
The electric vehicle (EV) market in India has been steadily growing due to increasing environmental concerns, government initiatives, and technological advancements. Here "Hero Electric (EV) Franchise" ticks all the pointers that include a comprehensive assessment of various factors, including technological advancements, market presence, sustainability initiatives, and customer satisfaction.
In 2024, In this rapidly evolving market, the Hero Electric franchise isn't just a purveyor of electric vehicles; it is a catalyst for change, a symbol of innovation, and sustainability, and a beacon guiding India towards a cleaner, greener future in transportation and customer-centric solutions.
The Hero Electric (EV) franchise represents a fusion of visionary leadership, robust infrastructure, and a commitment to revolutionizing India's transportation sector.
This analysis will explore and dissect the qualities and attributes that distinguish this exemplary Hero Electric (EV) franchise, setting the benchmark for excellence in the Indian Electric vehicle franchise landscape.
About Hero Electric Franchise
Hero Electric is a leading 2-wheeler electric scooter company in India and is part of the Hero EcoTech group. It has been run by Vijay Munjal along with his son Naveen Munjal, since 2007. The brand is headquartered in Gurugram, Haryana.
Don't be confused that the brand is associated with Hero MotoCorp, which recently launched its first electric scooter under the Vida brand.
Hero Electric offers a wide range of electric bikes and scooters, with a product line-up that includes various models such as Optima CX, Photon, Eddy, and NYX HX. The prices of these models vary, with the most affordable being the Eddy, starting from INR 72,142, and the most expensive being the Photon, priced at INR 1,10,376.
The company is known for being the largest electric two-wheeler manufacturer in India and has captured more than half of the market share of 2 wheeler electric vehicles, with a strong presence and a large distribution and service network across the country.
It has played a significant role in developing the Electric Vehicle (EV) market in India and has a sizable customer base, with more than 3 lakh happy customers and growing.
Hero Electric (EV) Dealership Franchise Model
Hero Electric franchise has announced plans to diversify into the premium electric bike segment under its new brand 'A2B'. The company aims to expand its reach and is looking for partners to join hands with them in this endeavour. The company has a strong presence in the country, with more than 850 sales and service outlets spread across 400 cities.
The cost of a Hero Electric (EV) franchise is estimated to require a starting investment of between INR 30 lakhs and INR 50 lakhs. The space required to set up the Hero Electric franchise is around 1500 sq. ft.
Prerequisites To Start A Hero Electric (EV) Franchise
- The entrepreneur must complete 21 years of age.
- One must be a graduate of a recognised institution.
- He should have a sound mind and financial condition to carry on the business smoothly.
- One can afford enough space either after buying it or renting it, to set up the franchise, which should be above 1000 sq. ft.
Steps To Start A Hero Electric (EV) Franchise
- Conduct thorough market research in your target area to understand the demand for electric two-wheelers and the potential customer base.
- Analyze competitors and their offerings in the electric vehicle segment.
Financial Planning/Investment Required:
- The investment i.e. needed is around INR 40 lakhs-50 lakhs depending on the location and many other factors.
- If the property is not owned then one has to rent it, so, Property Rent: > INR 40,000
- Bank's Assurance (Company Deposit): >INR 10 lakhs
- Infrastructure: >INR 5 lakhs
- Initial stock: >INR 20 lakhs
- Working Capital:>INR 3-5 lakhs
Contact Hero Electric:
- First, one should visit the official website and search for all the relevant information.
- Search for the inquiry form and fill in all the details it is asking for.
- Submit the form expressing your interest in becoming a Hero Electric franchisee.
- After that, you will get the message that you successfully registered for the Hero Electric (EV) dealership franchise.
Evaluation and Agreement:
- Hero Electric might evaluate your application, considering factors such as location, experience in the automotive sector (if any), financial stability, and alignment with their brand values.
- Review the Franchise Disclosure Document (FDD) provided by Hero Electric, detailing franchise terms, fees, obligations, and support offered.
- If approved, negotiate terms and sign the franchise agreement that outlines the rights and responsibilities of both parties.
Setup and Launch:
- Follow Hero Electric's guidance or criteria to select an appropriate location for the dealership.
- Set up the showroom space according to Hero Electric's branding and standards.
- Participate in training programs provided by Hero Electric to ensure an understanding of products, sales techniques, customer service, and operational procedures.
- Recruit and train staff for the dealership.
Operation and Growth:
- Stock the dealership with Hero Electric's range of electric two-wheelers based on market demand and recommendations and that must cost above INR 20 lakhs.
- Implement operational procedures as per Hero Electric's guidelines.
- Utilize marketing materials and strategies provided by Hero Electric to promote the dealership and attract customers.
Ongoing Support and Compliance:
- Adhere to Hero Electric's standards in terms of service quality, customer satisfaction, and brand compliance.
- Continuously assess the business, gather feedback, and make necessary improvements to enhance customer experience and profitability.
Market Trends Of Electric Vehicle 2 Wheeler Franchise
- The electric two-wheeler market in India is growing rapidly, driven by government initiatives to promote e-mobility and reduce emissions.
- The Indian government's Faster Adoption and Manufacturing of Electric Vehicles (FAME) 2 policy is encouraging EV adoption, and subsidies are offered for high-speed electric two-wheelers.
- The electric two-wheeler sales in India were up 305% in 2022 compared to the previous year, and the market has grown from fewer than 2,000 vehicles in 2013 to over 600,000 per year in 2022. The overall electric two-wheeler sales in India during the first half of FY2023 was about 4.56 lakh units, which is double the sales of Q1 of FY2022.
- The market is projected to continue growing, with electric two-wheelers expected to account for 60 to 70 per cent of new sales in India by 2030.
- The Asia-Pacific region, including India, is expected to dominate the global electric scooter and motorcycle market, which is projected to reach USD 1905.25 Billion by 2027, registering a Compound Annual Growth Rate of 25.4% during the forecast period (2022-2027).
Benefits Of Investing In Hero Electric (EV) Franchise
- Hero Electric is India's first and largest electric two-wheeler manufacturer, with over 3 lakh happy customers. By joining their dealership, you become a part of a well-established and reputable brand in the electric vehicle industry.
- The demand for electric vehicles, particularly e-bikes, is growing in both rural and urban sectors. As a Hero Electric dealer, you can capitalize on this demand and cater to a wide range of customers.
- Operating an electric vehicle franchise can be a profitable business, as dealerships have the potential to earn good profits and in this sense, Hero Electric almost maintained a monthly gross profit of above INR 1 lakh.
- Hero Electric provides support and guidance to its dealers, helping them set up and manage their dealerships effectively. This assistance can be invaluable in navigating the competitive market and ensuring the success of your business.
Why Choose Electric Vehicle Franchise over ICE Vehicle Franchise
- EVs: There's a growing global demand for eco-friendly transportation, driving interest in EVs due to environmental concerns and technological advancements.
- ICE Vehicles: Traditional ICE vehicles still dominate the market, but there might be a slowdown in growth due to increasing environmental regulations and consumer awareness.
- EVs: The EV market is experiencing rapid growth, albeit from a smaller base, and is projected to expand significantly in the coming years.
- ICE Vehicles: Growth in the ICE vehicle market might plateau or experience slower growth due to market saturation and regulatory pressures.
- EVs: Generally have lower operational costs due to fewer moving parts, less maintenance, and potentially lower fuel costs (electricity) compared to gasoline or diesel.
- ICE Vehicles: Maintenance costs might be higher due to more complex engines and components requiring regular servicing.
- EVs: Initial investment might be higher due to the evolving technology and infrastructure setup costs like charging stations.
- ICE Vehicles: Traditionally, initial investments might be lower due to the well-established infrastructure and technology.
- EVs: Continuously evolving technology, offering improvements in battery efficiency, longer ranges, and advancements in charging infrastructure.
- ICE Vehicles: While advancements occur, the technology has reached a mature stage with incremental improvements in efficiency and emissions.
- EVs: Zero tailpipe emissions, contributing to reducing air pollution and greenhouse gas emissions.
- ICE Vehicles: Contribute to air pollution and greenhouse gas emissions due to exhaust from combustion engines.
- EVs: Governments worldwide are incentivizing EV adoption through subsidies, tax benefits, and regulatory measures to reduce emissions.
- ICE Vehicles: Facing stricter emissions regulations, potentially leading to increased costs for compliance.
- EVs: Gaining popularity among environmentally conscious consumers and those seeking innovative technology.
- ICE Vehicles: Still preferred by a significant segment but might see a gradual shift in consumer preferences.
The road ahead for Hero Electric (EV) franchises in India is undeniably exciting, with the promise of continued growth, technological advancements, and a shared commitment toward a cleaner, more sustainable tomorrow. The EV franchises in India not only symbolize a burgeoning industry but also signify a collective step toward a more environmentally conscious and technologically advanced future of mobility.
The journey ahead holds vast potential, with the Heri Electric franchises poised to be the catalyst of change in India's automotive landscape. To know further about the franchise opportunity and dig deeper to understand the Hero Electric franchise, you must visit and consult the experts of FranchiseBAZAR.
Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.
Written By: Shruti Agrawal
Written By: Divisha Pandey
Written By: Divisha Pandey
Written By: Divisha Pandey