Two-wheeler industry to see double-digit revenue growth next fiscal: Hero MotoCorp CEO

The country’s largest two-wheeler manufacturer, having reported a total income of ₹10,031 crore in the October-December quarter of the current fiscal year, foresees improved performance in the entry-level segment in the future.

“As far as the demand is concerned, as we have been saying, we do expect the industry to grow double digit on revenue in the coming year at the least,” Gupta said in an analyst call.

He observed a trend within the domestic two-wheeler industry where consumers are increasingly gravitating towards premium options, seeking motorcycles with enhanced features. 

Gupta highlighted this shift towards premiumization, indicating a growing demand for feature-rich variants. Furthermore, he pointed out a positive trajectory for the entry-level bike segment, which had experienced sluggish sales in recent years but is now showing signs of recovery.

“So, it’s not just about the top end of India which is growing, you can see aspirations of people growing,” Gupta stated.

He noted that demand in the rural areas has improved considerably.

“At the bottom of 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 said.

He further said: “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.”

Elaborating on the company’s plans to upgrade sales outlets to sell premium segment models, he noted that the two-wheeler major has already upgraded 300 dealerships in the country so far.

“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.

Expanding on the company’s strategy to enhance sales outlets for premium segment models, he highlighted that the leading two-wheeler manufacturer has successfully upgraded 300 dealerships across the nation to date

Hero MotoCorp inaugurated its inaugural premium-exclusive showroom, named Premia, in October last year. According to Gupta, these initiatives equip the company with the essential tools for the advancement of its premium portfolio.

“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,” Gupta stated.

The company has also launched a new model Mavrick 440 with deliveries expected to commence in April.

“That will be boosting further our premium portfolio which is already looking very, very formidable,” 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, Hero MotoCorp Chief Business Officer Emerging Mobility BU Swadesh Srivastava said: “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.”

(With inputs from PTI)

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Published: 18 Feb 2024, 12:19 PM IST