Hero MotoCorp to Spin Off VIDA Electric Division, Eyes Stock Market Listing by 2030

Hero MotoCorp is planning to spin off its electric vehicle (EV) arm, VIDA, into a separate entity as part of its long-term strategy to strengthen its presence in India’s fast-evolving EV two-wheeler market. The Pawan Munjal-led company aims to list the standalone unit on the BSE and NSE by 2030, a person aware of the development told Republic Business.

“At this juncture, Hero MotoCorp is planning to scale up the volumes of its EV business. Once the company is able to gain significant volumes in the electric two-wheeler business, it will be hiving off VIDA as a separate entity. Thenceforth, it will get it listed on domestic stock exchanges,” said a source privy to the development.

Emailed queries sent by Republic Business to the Hero MotoCorp spokesperson remained unanswered despite multiple efforts.

VIDA: From brand launch to rapid scaling

According to the source, the move will allow VIDA to operate with “greater agility”, “attract external investors”, and independently chart its growth path in the competitive electric mobility space. VIDA, launched in March 2022 as Hero’s dedicated identity for emerging mobility solutions, has now grown into one of the fastest-scaling EV two-wheeler brands in the country. The brand’s first product, the VIDA V1, entered production and sales in October 2022, marking Hero MotoCorp’s formal entry into electric mobility.

Hero MotoCorp’s stake in Ather Energy

According to Hero MotoCorp’s 2023–24 annual report, its stake in Ather is 43.94% (equity), which translates to 40.89% on a fully diluted basis. However, per Ather’s IPO Red Herring Prospectus (RHP), Hero’s share is shown as 38.19%.

VIDA’s expanding EV Portfolio

The proposed spin-off marks a significant milestone in Hero’s EV roadmap. Launched in 2022, VIDA currently retails multiple electric scooter models including the V1 (Plus and Pro), the V2 range (Lite, Plus, Pro) introduced in December 2024, and the more accessible VX2 line-up (Go and Plus) launched in July 2025. These models span the Rs 90,000–Rs 1.4 lakh ex-showroom band, with the VX2 also offered under a Battery-as-a-Service (BaaS) subscription that reduces upfront costs to near Rs 60,000 in certain markets.

Also Read: Pawan Munjal-led Hero MotoCorp Q2FY26: Revenue Rises 16% to Rs 12,126 Crore; PAT Climbs 16% to Record Rs 1,393 Crore | Republic World

Infrastructure push and market expansion plans

Meanwhile, Hero MotoCorp has been steadily expanding its presence in major urban centres and investing in charging infrastructure, digital retail channels, and ownership programmes such as VIDA Advantage. The company has also outlined plans to widen VIDA’s mass-market offerings and explore international rollouts, including planned exports to Europe and the UK.

Industry experts say the spin-off and eventual listing could help Hero MotoCorp unlock value from its electric business while giving VIDA a sharper focus on technology, partnerships, and product innovation.

“The spin-off unlocks VIDA's valuation while giving it capital flexibility to compete independently. With number 4 position and 11.7% share, the 2030 timeline allows Hero to scale profitably before public scrutiny. Likely attracts specialized EV investors who avoid dilution in legacy ICE holdings,” stated Mohit Yadav, Director, Altinfo.

Vida's spin-off comes at a time when VIDA’s market performance has strengthened significantly: the brand crossed 1 lakh cumulative sales in August 2025, after delivering around 43,700 units in CY2024 and surpassing that figure in just the first seven months of 2025. Monthly volumes have risen sharply, with sales touching nearly 16,000 units in October 2025.

“Hero MotoCorp wants VIDA to become one of the leading EV two-wheeler brands in India by the time it goes public,” the person said. The individual also clarified that the company has no plans to reduce its stake in the Bengaluru-based EV startup Ather Energy.

VIDA’s growing footprint has also pushed it firmly into India’s top five EV two-wheeler sellers, often ranking between the third and fifth positions and holding a market share that has moved from about 4% in 2024 to the 6–10% range through 2025.

While Hero MotoCorp has not issued an official statement on the development, the source indicated that detailed plans for restructuring and capital infusion into VIDA are likely to be finalized over the next few quarters.