On the back of a series of new launches, India’s largest two-wheeler maker Hero MotoCorp aims to outpace the volume growth in the market, and improve its market share in the premium and mid-size segments.
“Going forward, we will consistently grow volumes, thereby operating leverage, and aggressively grow our premium portfolio,” the company’s management said in a post-earnings investor call.
Hero MotoCorp’s core strength has been in the entry-level, or 100-110 cc segment and had been struggling in the premium market due to its limited offerings. However, the company shifted its focus toward 125cc and premium segments last year.
The automaker had the highest number of product launches in FY24, more in the premium and 125cc segments – Xtreme 125R, Xtreme 200S, Xtreme 160R 4V, Harley-Davidson X440, Karizma XMR and the Mavrick 440.
Hero MotoCorp’s Chief Executive Officer Niranjan Gupta noted that these new launches and expansion of new format stores – Premia and Hero 2.0 – will drive the volume growth and market share gains in premium and 125cc segments going forward.
The company is also increasing the production capacity of the 440cc platform and Karizma to 10,000 units per month in another one or two months. The capacity of Xtreme will also be ramped up to 1,000 per day by June-July.
The management also noted that the company will strengthen its scooter portfolio with the launch of 125cc and 160cc variants of Zoom as well as a refreshed model of the 110cc in the first half of the financial year.
“There would be a couple of more (products) that will come in. In terms of broad spectrum, Hero MotorCorp will largely cover the big white spaces (in ICE two-wheeler) by the end of March 2025,” Gupta said.
