Hero MotoCorp eyes strengthening with newer models and capacity expansion

Hero MotoCorp is eyeing on expanding its scooter portfolio and strengthen its position in the 125cc bike segment, said CEO Niranjan Gupta. The company aims to race ahead of its competitors in these growing segments and capitalise the demand, a report by PTI stated.

The report added that the two wheeler maker plans to introduce new petrol and electric scooter models. Interestingly, the Hero Destiny will soon receive a full-body redesign, followed by the Hero Xoom models in 125cc and 160cc variants. Meanwhile in the electric two wheeler segment, Hero plans to expand into mid- and affordable segments.

Beyond scooters, Hero plans to focus on the bike segment as well. Hero Xtreme 125R will witness a significant increase in production capacity to meet rising demand, the company revealed. Hero plans to expand the monthly capacity of 25,000 units to 40,000 units per month in the coming months.

Market share gains

Hero MotoCorp has seen its market share for 125cc bikes surge to 20 per cent in the first quarter of FY25 from 13 per cent during the fourth quarter of FY24. Some models that made a real difference to this volume were Glamour, Super Splendor, and Xtreme 125R.

Hero MotoCorp is eyeing to capitalise on the increased demand for two-wheelers in India with its strategic focus on expanding the product range, adding capacities. This is aimed at further consolidating the company’s market share.

Falling market share

Interestingly, while Hero was the leading two wheeler brand in the Indian market, it was recently taken over by Honda two wheelers. A report by Society of Indian Automobile Manufacturers (SIAM), stated that in terms of wholesale dispatch, Honda has surpassed Hero MotoCorp during the first quarter of financial year 2024-25.

The data by SIAM revealed that Honda registered 18,53,350 units of two-wheelers in the April-July period of 2024, while Hero MotoCorp recorded 18,31,697 units during the same period. This translates into Honda dispatching 21,653 more two-wheelers than Hero MotoCorp, while the difference in exports between the companies is 1.3 lakh units with Honda taking the lead.

Interestingly, during the same period last year, Hero MotoCorp was leading the domestic market race with total domestic dispatch of 16,88,454 units of two-wheelers as compared to Honda’s 12,63,062 units.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.