Hero MotoCorp expects growth in entry-level motorcycle market in FY25
What's the story
Hero MotoCorp, the leading two-wheeler manufacturer in India, is expecting double-digit revenue growth in the upcoming financial year starting April 2024.
CEO Niranjan Gupta attributed this optimism to the increasing demand for premium models and an anticipated improvement in entry-level two-wheeler sales, per PTI.
Gupta also acknowledged the positive signals emanating from the rural sector. "We will see in the coming quarters, growth picking up from that segment," he added.
Expectations
Entry-level motorcycle sales to recover, says CEO
Gupta also mentioned that the entry-level motorcycle segment, which has experienced sluggish sales in recent years, is now on the road to recovery.
He explained, "So, it's not just about the top end of India which is growing, you can see aspirations of people growing."
The CEO highlighted the significant improvement in rural demand, crediting factors such as heavy capex spending, digital inclusion, and a revived hospitality industry.
Premium category
Hero MotoCorp's plans for premium two-wheelers
In response to the growing demand for premium models, Hero MotoCorp has already upgraded 300 dealerships across India to sell high-end motorcycles.
Gupta shared that by the end of this fiscal year, the company aims to upgrade 400 sales outlets and cross 500 upgraded outlets along with 100 Premia stores next year.
He stated, "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."
Expansion
Expansion of Vida electric scooter portfolio
Swadesh Srivastava, Hero MotoCorp's chief business officer of emerging mobility, revealed plans to expand the Vida electric scooter portfolio in the first quarter of FY25.
He 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."
"We definitely see that we'll have the right positioning to scale up fast in FY25," he added.