In the dynamic world of two-wheeler manufacturing, Hero MotoCorp is not only holding its ground but is boldly stepping into new territories. The recent 32-day festive period from Navratri to Bhai Dooj has been a resounding success for the company, with a remarkable 14% increase in vehicle sales compared to the previous year. Let’s delve into the details of Hero MotoCorp’s strategy and ambitions for the future.
Hero MotoCorp Impressive Festive Sales Growth
The festive season proved to be a boon for Hero MotoCorp, as the company witnessed a surge in sales, totaling over 14 lakh vehicles. This impressive 19% growth over the previous year speaks volumes about the brand’s resonance with consumers. October alone saw a wholesale offtake of 5.59 lakh units, propelling the company’s shares to a 33-month high.
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Expansion into the Premium Motorcycle Segment
Breaking away from its stronghold in the entry-level commuter motorcycles, Hero MotoCorp is gearing up to make a significant mark in the premium motorcycle segment. The company has ambitious plans to launch a premium motorcycle based on the Harley Davidson X440 platform in the upcoming fourth quarter. Niranjan Gupta, CEO of Hero MotoCorp, shared in an exclusive interview with CNBC-TV18, “We plan to take the production of premium motorcycles, including Karizma, X440, and the new Hero 440cc bike, to 10,000/month by March.”
Market Leadership in Commuter Motorcycles
While Hero MotoCorp has established itself as the market leader in entry-level commuter motorcycles, there has been a perception of a gap in its sales of premium motorcycles and electric vehicles. However, Gupta dismissed these concerns, asserting that the company is well on track with its strategic initiatives in these segments.
Challenges in Premium Motorcycles and Electric Vehicles
Addressing the challenges in the premium segment, Gupta highlighted the success of their premium offerings, with 25,000 bookings for X440 and over 10,000 bookings for Karizma. This overwhelming response indicates a promising future for Hero MotoCorp in the premium motorcycle market.
Hero MotoCorp’s approach to tackling challenges involves a multi-pronged strategy. The company has already upgraded 200 of its dealership outlets and opened three new premium stores. Gupta revealed that they aim to launch a total of 100 premium stores by June next year, signaling a significant investment in infrastructure.
Sales Figures and Bookings
The success of Hero MotoCorp’s premium bikes is evident not only in the current sales figures but also in the substantial bookings for X440 and Karizma. With a strategic focus on expanding touchpoints and upgrading stores, the company is poised for sustained growth in the premium segment.
Recognizing the importance of infrastructure, Hero MotoCorp plans to increase the production of premium motorcycles and electric vehicles. The company is committed to expanding its premium stores and charging infrastructure, aligning with the growing demand for electric vehicles.
Performance in Electric Vehicle Market
In October, Hero MotoCorp sold 1924 electric two-wheelers, a significant increase from 532 vehicles in September. Ather Energy, where Hero MotoCorp has a 37% shareholding, also reported impressive sales, with 8,346 electric two-wheelers sold in October. Gupta emphasized that the company is already manufacturing 1,000 electric vehicles per month and aims to take the Vida scooter to 100 cities by year-end.
Future Plans in Electric Vehicles
Looking ahead, Hero MotoCorp has ambitious plans for the electric vehicle market. The company intends to expand touchpoints for the Vida brand and establish a charging network in collaboration with Ather Energy. Additionally, Hero MotoCorp will introduce two new electric scooters in the mid and affordable range in the next 4-5 quarters.
Outlook for the Coming Year
As the industry evolves, Gupta outlined Hero MotoCorp’s outlook for the coming year. The company remains steadfast in its core segment of commuter bikes, continuing to cater to the needs of a vast consumer base. Furthermore, plans are in place to launch products aimed at regaining lost market share in the 125 cc segment.
Hero MotoCorp’s journey is marked by resilience, adaptability, and a forward-looking approach. The surge in festive sales, coupled with strategic moves into the premium and electric vehicle segments, positions the company for sustained growth. With a commitment to infrastructure development and a focus on customer demand, Hero MotoCorp is not just keeping up; it’s setting the pace for the future of two-wheeler manufacturing.
- What contributed to Hero MotoCorp’s impressive festive sales growth?
- The festive season saw a 14% rise in vehicle sales, driven by a strong performance, selling over 14 lakh vehicles.
- How is Hero MotoCorp addressing challenges in the premium motorcycle and electric vehicle segments?
- The company is implementing a multi-pronged strategy, including infrastructure upgrades, new premium stores, and a focus on expanding its electric vehicle portfolio.
- What are the current sales figures for Hero MotoCorp’s premium bikes?
- Hero MotoCorp has reported substantial bookings, with 25,000 for X440 and over 10,000 for Karizma.
- What steps is Hero MotoCorp taking in infrastructure development for electric vehicles?
- The company plans to increase production, expand premium stores, and establish a charging network in collaboration with Ather Energy.
- What is Hero MotoCorp’s outlook for the coming year?
- The company remains committed to its core segment of commuter bikes and aims to launch products to regain market share in the 125 cc segment.