UBS has maintained a ‘Sell’ rating on Hero MotoCorp, with a target price of ₹3,430, highlighting challenges in the competitive electric vehicle (EV) segment. The recent launch of Hero’s Vida V2, featuring a smaller battery variant, is expected to attract some market share but at the potential cost of profitability.
UBS warns of intensified pricing competition in the EV segment as major original equipment manufacturers (OEMs) introduce new launches in the coming quarters. Hero MotoCorp is likely to face margin pressure as aggressive pricing strategies take center stage in the market.
Despite challenges, legacy OEMs like Hero are expected to maintain an edge over startups, leveraging their established presence in the two-wheeler market.
