According to Hero MotoCorp CEO Niranjan Gupta, the domestic two-wheeler industry is expected to see double-digit revenue growth in the next financial year, with demand for premium models expected to further accelerate.
The country’s largest two-wheeler manufacturer recorded total income With earnings of Rs 10,031 crore in the October-December quarter of the current financial year, it is also expected that the entry level segment will perform better going forward.
“As far as demand is concerned, as we have been saying, we expect the industry to see at least double-digit growth in revenues in the coming year,” Gupta said in an analyst call.
Also read: Auto makers had a strong start to 2024, recording growth in January sales
He said there is a shift towards premiumisation in the domestic two-wheeler sector and buyers are looking for feature-rich trims.
Gupta said the entry-level bike vertical, whose sales have been sluggish over the past few years, is also on the recovery path.
“So, it is not just about the top end of India that is growing, you can also see the aspirations of the people growing,” Gupta said.
He said that there has been a lot of improvement in demand in rural areas.
Also read: Hero-owned Surge unveils ‘Batmobile’-like convertible EV S32. Description
Gupta said, “At the bottom of the pyramid, the huge capital expenditure that is happening, the digital inclusion that is happening, the hospitality industry that you can clearly see, that has picked up, it is really the lower level consumers. “Raising the spirit of.” Said.
He further added, “We are clearly seeing positive signals from the rural sector as well and we will see growth in that sector pick up in the coming quarters.”
Elaborating on the company’s plans to upgrade sales outlets to sell premium segment models, he said the two-wheeler maker has so far upgraded 300 dealerships in the country.
“By the end of March we will have 400 (upscale sales outlets), and next year we will cross 500 2.0 stores (upscale sales outlets) along with 100 premia stores,” Gupta said.
Also read: Karizma-based CE001 unveiled as a tribute to Hero Group founder Brijmohan Munjal
Hero MotoCorp opened its first premium-exclusive showroom under the Premia brand name in October last year.
All this provides the company with the necessary arsenal to grow its premium portfolio, Gupta said.
“We are taking several steps into the premium segment. Our initial success that we have seen on the Harley X440 and Karizma continues,” Gupta said.
Deliveries of the Maverick 440 are expected to begin in April
The company has also launched a new model, the Maverick 440, whose deliveries are expected to begin in April.
“This will further boost our premium portfolio which already looks very, very strong,” Gupta said.
In October 2020, Hero MotoCorp and Harley-Davidson announced a partnership for the Indian market.
The deal envisages Hero MotoCorp developing and selling a range of premium motorcycles under the Harley-Davidson brand name in the country.
On plans to expand VIDA products, Swadesh Srivastava, Chief Business Officer, Emerging Mobility BU, Hero MotoCorp, said: “We are going to play at three price points within the first quarter of FY20, starting with the mid-range with affordable and very competitive offering. segments in the market. With this, we certainly see that we will have the right conditions to grow rapidly in FY2015.”
