Following the news that India-based electric two-wheeler (e-2W) company Hero Electric has partnered with electric vehicle leasing start-up Earth Ride in India;
Animesh Kumar, Director of Automotive and Travel & Tourism Consulting at GlobalData, a leading research and consulting company, offers his view:
“In recent times, the electric two-wheeler market has witnessed the entry of new players with innovative products and ownership models. To gain maximum share, Hero Electric has been making strategic changes to its business model through dealership network expansion, wide product range and partnerships with shared mobility and leasing companies. Hero partnered with shared mobility company eBikeGo in December 2020 to supply over 1,000 electric two-wheelers for last-mile mobility.”
“Since the demand for electric two-wheelers for personal use has failed to get significant traction due to high acquisition costs, market participants are betting on shared mobility, corporate leasing and delivery businesses. Delivery business in India is growing rapidly, especially in the COVID-19 era. Earth Ride offers electric scooters to delivery partners on lease with an option to own the vehicle at the end of the lease period. The lease does not put a heavy burden on the customers in the segment and it is easier to recover the investments under shared mobility and delivery business models. Moreover, electric scooters are economical and eco-friendly. Most importantly, the initiative can help in generating employment among the young population.
“Hero Electric already has a subscription model through a partnership with Autovert Technologies. Customers in Bangalore can get new Hero Electric scooters from as low as INR2,999 (approximately US$41) monthly subscription fee. Under the partnership with Earth Ride, Hero Electric will be supplying electric scooters to the company and the leasing model will help in increasing the uptake of Hero Electric’s vehicles as well as uptake of electric scooters in general.”