Hero MotoCorp set to launch four additional premium bikes

Delhi : Hero MotoCorp, the nation's largest two-wheeler manufacturer, intends to have a product portfolio of more than six premium bikes as part of its aim to boost its footprint in the expanding premium motorbike industry. This supports our June 2023 claim that Hero MotoCorp was creating four premium motorcycles, two for the top premium sector and two for the core premium segment, both based on the Harley X440.

Hero MotoCorp is increasing the ante by bringing back its well-known brand in the shape of the Karizma XMR. Up to this point, the company has only had a limited presence with the Xtreme and Xpulse models. The company will benefit from more sales thanks to the alluring (and inaugural) pricing of Rs 1.73 lakh (ex-showroom, Delhi). 

The premium motorcycle industry is expanding twice as quickly as the mainstream bike market, according to Niranjan Gupta, CEO of Hero MotoCorp, and the business intends to provide a range of options in terms of form factors and pricing ranges. The lack of options has previously been a significant barrier for Hero in the premium market, according to Gupta. The business is trying to dominate the market with a fresh portfolio of products, a full 360-degree showroom, and an exceptional aftersales experience.

Customers are open to trying out new brands at the higher end of the market, therefore we plan to provide a wide range of bikes. In the luxury bike industry, we hold a 5% market share, but the game is only beginning for us. Each of these bikes will contribute to the puzzle we are assembling, and this will also be supported by a 360-degree premium experience, according to Gupta.

Hero MotoCorp now sells the Xtreme and the Xpulse, a street bike and an adventure bike respectively, and has sold about 70,000 motorcycles in FY23. The business may possibly treble its premium bike sales with the inclusion of the Karizma, Harley-Davidson X440, and its own version of the 440cc cycle, which is likely to be more young and sportier, though on a low foundation.

The company's Hero 2.0 retail plan calls for the renovation of its 500 existing outlets in addition to the creation of 100 special boutiques for its line of high-end bikes. In the current fiscal year, Hero MotoCorp has planned an investment of Rs 1,000 crore, primarily for its high-end bikes and electric vehicles. While product improvements will still be made in the firm's core market, where the Splendor reigns supreme, the high end of the market, which includes EVs, will experience the most product disruptions, according to company executives. 

"The portfolio building will continue -- one new bike will be released every three months for the ensuing 12 months, and all of this will contribute to our premium positioning going forward." Gupta refused to provide specifics when asked about the market share vision, saying simply that "we are in it for the long term, and the share should only grow." Hero MotoCorp anticipates double-digit growth in FY24, driven in part by a new line of goods, despite the market now expanding at a single-digit rate. The first impressions from the holiday season have been overwhelmingly good.

According to Gupta, "the recovery in the entry segment is slow, the potential is enormous, and expected penetration in the future is large." There is still a sizable unmet need that is just waiting to be satisfied. When the core entrance segment returns, it's simply a matter of time.

The primary business of Hero MotoCorp, the 100-110cc class, has seen a decline in market share over time. However, the premium motorbike segment's market share has increased. In the 1.9 million premium motorbike (bikes with capacities over 150cc) market, Hero MotoCorp only sold 69,000 units in FY23, accounting for a 3.7 percent market share.

Gupta responded that the Indian market is not yet saturated and that the segment mix is quite dynamic because there are many types of customers in various segments. He was asked about the probable mix of mass motorbike and premium motorcycle segments in the future. The mix will continue to evolve, he added. The future offers even greater possibility, and all segments will continue to find buyers.