Hero MotoCorp has entered the race of electric vehicles with its Vida V1, which brokerages suggest is priced significantly higher when compared to its competitors. Hero MotoCorp has introduced two trims of its first electric scooter — Vida V1 Plus and Vida V1 Pro — tagged at Rs 1.45 lakh and Rs 1.59 lakh (ex-showroom), respectively.

Since the launch on Friday, Hero MotoCorp shares have slipped more than 3 percent. On Monday, the auto stock was trading 2.8 percent lower at Rs 2550.40 on BSE at 10:16 am. The downtrend also comes amid an overall negative trend in the market as concerns about the impact of steep rate hikes on economic growth persist.

However, global brokerages CLSA and Citi continue to remain bullish on India’s largest two-wheeler maker. The former has an ‘outperform’ call on the company and expects its stock to rise a further 12 percent. Citi has given a buy rating to the automaker and sees more than an 18 percent upside in its share price from Friday’s closing price.

While global brokerage Citi is awaiting customer response to what it called a “relatively highly-priced” product, CLSA believes the firm must launch vehicles at a cheaper price to challenge existing players in the EV segment.

The electric scooter would be produced at the company's Chittoor-based plant in Andhra Pradesh and compete with the likes of Bajaj Chetak, TVS iQube, Ather Energy, Hero Electric and Ola Electric, among others.

Vida V1's peer Ather 450X is priced at 1.56 lakh, Ather 450 Plus at Rs 1.34 lakh, Ola S1 Pro at 1.52 lakh, Bajaj Chetak at 1.47 lakh, and TVS iQube S at 1.26 lakh.

However, Hero MotoCorp Chairman and CEO Pawan Munjal said, "It does not mean that we will never have a more affordable product in terms of pricing. Surely, there will be going forward."

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Vida V1 Plus comes with a range of 143 kilometres, while the Vida V1 Pro comes with an enhanced range of 165 km on a single charge. The company will commence sales of the electric scooter in Bengaluru, Delhi and Jaipur before scaling up to the new locations.

The bookings will start on October 10, and deliveries will commence in the second week of December. Munjal said the company would add new locations gradually while utilising its existing strength in terms of strong sales infrastructure across the country.

"We will not go for high volumes right up from the start. We will open bookings in another eight cities in December, followed by more cities. As we ramp up production, we will open in more cities," he stated.

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Citi believes that Hero MotoCorp’s EV launch has been delayed, but good specifications are an advantage. Also, the company’s momentum is healthy in terms of premium motorcycles, the brokerage said, adding that valuations look attractive at current levels.

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