Entry-level motorcycle sales to recover in FY25, hopes Hero MotoCorp CEO

Hero MotoCorp, the biggest two-wheeler manufacturer in India hopes the country's two-wheeler industry will see a double-digit revenue growth in the next financial year starting from April 2024, reported PTI. During an analyst call, Hero MotoCorp CEO Niranjan Gupta reportedly said the Indian two-wheeler industry will witness a double-digit revenue growth in FY25 buoyed by the demand for premium models. He also reportedly hopes the entry-level two-wheelers to clock better sales performance in the next fiscal.

Hero MotoCorp reported a total earning of ₹10,031 crore in the October-December quarter of this fiscal. Once known as the king of commuters, Hero MotoCorp has been slowly evolving its products with a touch of premiumness, catering to the growing demand for premium motorcycles and scooters across the country. Gupta believes this trend of rising demand for premium two-wheelers will continue, eventually helping the industry to grow further.

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Entry-level two-wheelers to see recovery

Despite the shift taking place in the Indian two-wheeler market in favour of premium products with feature-rich trims, the sector is dominated by entry-level motorcycles and scooters powered by engines ranging between 100-125 cc, where Hero MotoCorp has been at the dominating position for years. Over the last few years, several factors have contributed to sluggish growth for the entry-level models. Muted demand in the rural market, which is the largest contributor to the overall two-wheeler sales in the country has played a key role in this situation. Hero MotoCorp CEO believes the situation will improve in the next financial year.

Gupta reportedly stated that the entry-level motorcycle segment, which has seen muted sales over the last few years, is on a recovery path. "So, it's not just about the top end of India which is growing, you can see aspirations of people growing," he stated. The top Hero MotoCorp official also noted that demand in the rural areas has improved considerably. "At the bottom of the pyramid, the heavy capex spend that's been happening, the digital inclusion that's been happening, the hospitality industry that you can see clearly which is lifted up, it's actually lifting the sentiment of the consumers of the bottom end," Gupta reportedly said further adding, “We clearly see the positive signals which are emanating from the rural sector as well and we will see in the coming quarters, growth picking up from that segment."

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Hero MotoCorp aims big with premium two-wheelers

Elaborating on the company's plans to upgrade sales outlets to sell premium segment models, Gupta noted that the commuter king has big plans with its premium models. He stated that the company already upgraded 300 dealerships in the country so far to sell premium motorcycles. By the end of this fiscal, the company aims to upgrade 400 sales outlets across India. “By March end we'll have 400 (upgraded sales outlets), and next year we'll cross 500 2.0 stores (upgraded outlets) along with 100 Premia stores," Gupta stated.

Hero MotoCorp opened its first premium-exclusive showroom under the brand name Premia in October last year. This strategy will provide the necessary arsenal for the company's premium portfolio to grow, Gupta said. "We have been taking a lot of actions in the premium segment. Our early success that we have seen on Harley X440 and Karizma continues," he stated. The Premia outlets will sell models like Mavrick 440, which is based on Harley-Davidson X440. Deliveries of the Mavrick 440 are slated to commence in April 2024. "That will be boosting further our premium portfolio which is already looking very, very formidable," Gupta said while speaking about the Mavrick 440.

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Hero MotoCorp to add more models to Vida portfolio

Despite being a late entrant in the rapidly bulging electric scooter market in India, where Ola Electric and Ather Energy have grabbed sizeable chunks, Hero MotoCorp has already earned the attention of the buyers with Vida V1. The two-wheeler major is planning to expand its Vioda portfolio in the next financial year.

On plans to expand Vida products, Hero MotoCorp Chief Business Officer of Emerging Mobility BU Swadesh Srivastava said that the company is planning to bring new models under the Vida portfolio in the first quarter of FY25. "We're going to be playing in three price points within the quarter one of FY25, which includes affordable and the mid-segment with a very competitive offering in the market. With that in place, we definitely see that we'll have the right positioning to scale up fast in FY25," he added.