"Probably this fiscal year, we'll see the maximum number of launches that Hero has ever seen in its history", said Niranjan Gupta, CEO of Hero MotoCorp.
15 May 2023 | 5414 Views | By Amit Vijay M and Shruti Mishra
In a bid to up its ante in the product mix, Hero MotoCorp, the world's leading two-wheeler company, has lined up aggressive new launches in commuter, executive, and premium segments in the current year. The company is also refreshing its strategy in the 100 and 110cc segments, where it is ...
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In a bid to up its ante in the product mix, Hero MotoCorp, the world's leading two-wheeler company, has lined up aggressive new launches in commuter, executive, and premium segments in the current year. The company is also refreshing its strategy in the 100 and 110cc segments, where it is the maker leader, on the back of rural markets that have shown early signs of recovery. Backed by soft commodity prices, improved market sentiments, and the ongoing wedding season in April-June, it expects to strengthen its margin and regain its lost market share by introducing one product in every quarter in FY24.
According to Niranjan Gupta, CEO of Hero MotoCorp, the company is witnessing broad-based growth across entry, deluxe, and 125cc models, the premium segment as well as scooters. "Probably this fiscal year, we'll see the maximum number of launches that Hero has ever seen in its history. All of the key indicators are trending upward, and we expect the economy to outperform most other countries," Gupta said during the analyst call.
Additionally, it is also eyeing enhancing its foothold in the premium segment by upgrading its Xtec variants. During the call, the management also hinted at an introduction of a product under the Harley Davidson brand. "You will see a lot of launches in the premium segment in the coming year, while I can't specify the dates of those but just watch out for those. There will be big launches that have come up in this fiscal year, which will then ensure that we can build the right premium portfolio and get our market share on that," Gupta added. The Indian two-wheeler major will also take care of service and parts requirements for Harley bikes.
As per market reports, Hero MotoCorp, through its partnership with Harley Davidson, is planning to launch the Harley Davidson HD 4XX as the American brand's most affordable offering yet, aiming to target the Royal Enfield Classic 350 and the Royal Enfield Meteor 350.
The two-wheeler manufacturer has also expanded its Splendour line in anticipation of the wedding season in UP, Bihar, and West Bengal. Ranjivjit Singh, Chief Growth Officer, told analysts that the company has introduced the HF Deluxe at the entry-level, with added features like tubeless tyres and the USB charger to better capture the urban and semi-urban markets. "We're seeing a lot of great traction returning to HF," he added. The company has given special attention to the executive 125cc segment where it is lagging behind its arch-rival Honda Motorcycles & Scooters India. According to the CEO, the company has improved its market share to 22 percent in 125cc space from 14 percent earlier.
"We are looking at building up the momentum as we go along month-on-month for the 125cc. We have a lot of connected features that we are bringing in our product on our path to the entire digitisation, not just the processes but of the products as well, which gives us the confidence to ensure that our recovery path on the market shares and refreshment of the products is stronger," Gupta highlighted.
On the electric vehicle front, the company has accelerated its plan to expand its Vida electric scooter to 100 more cities by the end of this calendar year. "At Hero, we have the widest and deepest distribution system in the country, and we will be leveraging the same to ensure our reach in the EV business," CEO said.
On the outlook, the management foresees the two-wheeler industry clocking double-digit growth in this fiscal year, as rural demand moves forward, led by benefits from the government’s capex push, albeit with a lag. “The Indian economy continues to be resilient, as you have seen, and is one of the fastest-growing major economies in the world, despite challenges such as financial sector inflation and geopolitical issues. All the key indicators are moving in the right direction, and we expect the economy to outperform most other countries,” Gupta added.