Hero MotoCorp bullish on used two-wheeler business

The country’s largest two-wheeler company, Hero MotoCorp has made a comeback in the used two-wheeler business. Christened ‘Hero Sure’, the business will allow buyers to exchange their old motorcycle or scooters while purchasing a new Hero two-wheeler.

Hero Sure is promoted by Pawan Munjal, chairman, managing director and CEO of Hero MotoCorp. The country’s largest two-wheeler brand had entered the used two-wheeler market many years ago but had to shut its operations owing to tax issues. However, with the introduction of Goods and Services Tax (GST), Hero has re-entered the used two-wheeler business again.

The brand has commenced the new business with a pilot batch of around 100 dealerships in Gujarat and Tamil Nadu, for which the company says initial response has been quite positive and it plans to expand Hero Sure to other states as well. Hero MotoCorp currently has around 6,500 dealerships in the country and as a result the expansion of Hero Sure outlets can be expected to proceed at a brisk pace.

Speaking about the new initiative, a Hero MotoCorp spokesperson commented, “Hero Sure helps the customer get the best price for his vehicle on the basis of a transparent evaluation process. About 5,000 vehicles are currently exchanged on an average every month at the Hero Sure facilities.”

The Hero Sure business also helps the brand in retaining its customers. It currently has more than 10 million active customers and if a fraction of these customers upgrade to a Hero offering, sales will receive a massive boost.