Hero Electric, once India’s leading electric-scooter maker, has officially entered insolvency proceedings under India’s Insolvency & Bankruptcy Code due to Rs 301 cr in admitted debts . Once the country’s top EV two‑wheeler manufacturer, it faced a dramatic sales drop—from about 100,000 units in FY 2023 to just 11,500 in the last financial year, triggered by regulatory hurdles and localisation challenges.

The insolvency timeline: a call for investment expressions of interest went out on February 18, bids were due by March 14, eligibility was assessed by April 8, and the final resolution plan deadline set for May 13.

Adding to its woes, Hero Electric is under scrutiny by the Serious Fraud Investigation Office for allegedly misusing FAME II subsidies, with a ₹133 cr demand pending; prior attempts at resolution—including legal appeals and mediation—have not succeeded.

Despite this turmoil, India’s electric two‑wheeler market continues to grow robustly. EV penetration in two‑wheelers surpassed 6.1% in 2024, and sales are projected to triple in the next five years.