Hero MotoCorp looks to ramp up export as it aims to recover market share

  • India's largest two-wheeler manufacturer Hero MotoCorp hopes the global business to be at least 10 per cent of its overall revenue.
Hero MotoCorp has launched its new 110cc flagship scooter Xoom in India at a starting price of ₹68,599 (ex-showroom). It aims to take on the likes of Honda Active and Dio.
Hero MotoCorp has launched its new 110cc flagship scooter Xoom in India at a starting price of ₹68,599 (ex-showroom). It aims to take on the likes of Honda Active and Dio.

Hero MotoCorp expects exports to contribute at least 10 per cent to the overall revenue pie in the medium to long term while aspiring to grow faster than the industry in the domestic market in next fiscal year, according to company's CFO Niranjan Gupta. At present, overseas shipments' share in the overall turnover pie is in low single digit. The country's largest two-wheeler maker, which ships its products to various geographies in Asia, Latin America and Africa, also plans to scale up its presence in the domestic premium segment.

"As far as global business (exports) is concerned over the medium to longer term, we do want global business to be at least 10 per cent of our overall revenue. There are actions which are in place..," Gupta said in an analyst call.

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There were huge headwinds last year in a lot of key markets due to currency inflation and other factors with some of the markets like Sri Lanka even closing down, he said.

"But obviously, these markets will come back and therefore we will scale up," Gupta said.

He noted that enhanced fund allocation for capital expenditure and provision to boost disposable income in Budget 2023-24 are expected to help the domestic two-wheeler industry post a double-digit revenue growth in next fiscal.

"We are on path to market share recovery and backed by action on all fronts, including multiple product launches which are lined up in the coming quarters, we expect ourselves to grow ahead of the industry in FY24," he added.

Gupta noted that global headwinds are expected to continue with some countries anticipated to fare better than others. India is relatively much better placed and all key economic indicators are moving in the right direction.

Elaborating on the company's strategy going ahead, he said the company aims to recover its market share in the 125cc segment.

"Our opportunity lies in building a premium portfolio where multiple launches are lined up, not only the coming year but actually next three to five years and you will see therefore in the medium term, us building meaningful market share of the premium (segment) backed up by the portfolio," Gupta said.

On EVs, clearly it is a geographical expansion followed by portfolio expansion, he added.

"So those are broadly, if I were to sum it up, strategies for us in the medium term moving forward on how we are going to grow on our top line and market shares," Gupta said.

To a query regarding the company's preparedness on the second phase of BS6 emission norms, he said its products will conform to the stricter regulations which kick in from April 1 this year.

On expected increase in prices, he said "It is expected to be probably in the range of... 500 to 800 per vehicle."

First Published Date: 15 Feb 2023, 17:07 PM IST
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