Hero MotoCorp Ltd.’s launch of the Vida V2 series is pivotal for the bike maker to secure a stronghold in the evolving electric vehicle market, Morgan Stanley said. The company’s share in the current electric two-wheeler market stands at a modest 6% as of November 2024, the brokerage said.

It remains ‘underweight’ on the Hero MotoCorp stock, with a target price of Rs 4,110 apiece, indicating a potential 11% downside.

Hero unveiled three variants under the Vida V2 umbrella:

  • Vida V2 Lite: Priced at Rs 90,000.

  • Vida V2 Plus: Priced at Rs 1.15 lakh.

  • Vida V2 Pro: Priced at Rs 1.35 lakh.

The Vida V2 Lite undercuts competitors like Ola (Rs 70,000) and Bajaj’s 2.9kWh model (Rs 96,000), while the Vida V2 Pro stays competitively priced against premium alternatives, Morgan Stanley said.

The brokerage sees Hero’s pricing strategy and product diversification as efforts to drive sustained market share gains—a critical factor for a re-rating of its stock. The launch comes amid intensifying competition in India’s electric two-wheeler market, with established players and startups vying for dominance.

While Hero has the brand equity and distribution network to scale, the brokerage highlights the challenge of translating product launches into significant market share gains. Successful scaling of the Vida series and margin retention amid potential cost pressures are key to Hero’s EV story.

Risks And Valuation

Morgan Stanley values Hero’s EV business at four times its June 2026 estimated EV/sales. The brokerage warns, however, that failure to gain traction in the EV segment or pass on cost advantages to consumers could hinder Hero’s momentum.

Hero MotoCorp Share Price Today

Share price of Hero MotoCorp. rose as much as 0.91% to Rs 4,678.05 apiece. It pared gains to trade 0.35% higher at Rs 4,652.20 apiece, as of 09:30 a.m., compared to a 0.21% advance in the NSE Nifty 50.

The stock has risen 22.21% on a year-to-date basis. The relative strength index was at 35.14.

Out of 44 analysts tracking the company, 30 maintain a ‘buy’ rating, seven recommend a ‘hold’ and seven suggest ‘sell’, according to Bloomberg data. The average 12-month analysts’ consensus price target implies an upside of 13.1%.

. Read more on Markets by NDTV Profit.Morgan Stanley remains ‘underweight’ on the Hero MotoCorp stock, with a target price of Rs 4,110 apiece, indicating a potential 11% downside.  Read MoreMarkets, Business, Notifications 

​NDTV Profit