InvestorQ : How is the tie-up between BPCL and Hero Motocorp for EVs going to pan out in the coming months?
Riya Dwivedi made post

How is the tie-up between BPCL and Hero Motocorp for EVs going to pan out in the coming months?

shrinidhi Rajan answered.
1 year ago

It almost looks like a marriage of equals. India’s largest two-wheeler manufacturer, Hero Motocorp and BPCL planning to leverage a partnership to become EV ready. Hero Moto and BPCL will join hands to set up charging infrastructure for 2-wheeler electric vehicles. This will enable BPCL has to rapidly convert 7,000 of its conventional retail outlets into energy stations that flexibly cater to multiple fuelling options, including EV charging facilities.

Needless to say, the key challenges to electrical vehicles (EV) growth in India is the availability or should I say the lack of adequate infrastructure. But it has to develop over time and that is where powerful partnerships come in handy. EV charging stations and battery replacement points have to be widespread like petrol and diesel stations today. Unless that kind of infrastructure is ready, growth of EV beyond a level will be tough.

The biggest merit of the tie-up is that customers of Hero Moto can now leverage the extensive nationwide fuelling infrastructure of BPCL. Remember, that charging is just one part of the entire collaboration. Customers will eventually need charging, exchanging batteries, other forms of wear and tear service etc. It is about the EV ecosystem as well as lateral verticals. This will enable better ownership of the customer through the life cycle.

In the first phase of the rollout, charging stations will be established in 9 key cities starting with the bustling metropolises of Delhi and Bengaluru. Once waters are tested, the of alliance will expand across India to establish high density of charging stations. That is what will bring about a quantum leap for EV ecosystem. It would be eventually value accretive for Hero Moto, for BPCL and also for end customers and the fuelling stations.

Even the BPCL chairman admitted that personal mobility for the average Indian was still best represented by two-wheelers rather than four-wheelers. In most cities, the two-wheelers form the largest part of the auto customer base in numbers. In addition, the transition to EVs is expected to be a lot quicker, seamless and simpler in the case of two wheelers than four-wheelers. Both companies see a future in innovative EV solutions.

The game plan is yet to be documented but some of the basic building blocks are in place. Hero Moto will shortly commence infrastructure development in Delhi and Bengaluru. As the first step, each charging station will feature multiple charging points, including DC and AC chargers. This will be available for use to all two-wheeler EVs. The charging experience will be controlled by the Hero Moto mobile application via cashless transaction mode.