Despite the minimal success thus far, Hero MotoCorp is betting high on its partnership with US’s cult bike company Harley-Davidson to make a fresh start in the premium motorcycle segment in a desperate effort to shed the image of an entry level bike maker.
The Delhi-based, India’s largest two-wheeler maker, which launched the world’s cheapest priced Harley-Davidson bike in the country earlier this week, aims to flood the market with motorcycles having engines between 200cc and 440cc, a top company official said.
In a recent call with the analysts, Niranjan Gupta, CEO, Hero MotoCorp said, “We have had the 160 Xtreme, 160 R4V, Xpulse 200 and now this (Harley-Davidson X440). Later we will have models straddling in between (these models) as well.”
The company has committed to launch a motorcycle under its own brand, based on the X440 platform, later this year.
Further launches in the premium segment will also happen later this year.
“As far as our line-up is concerned, we would be launching a model which would be based on a similar platform but of a different style to cater to a different customer profile, which will come before the end of this fiscal. Beyond that we will see more premium products this year,” Gupta added.
Gupta dismissed the “3-4%” market share that Hero MotoCorp has in the premium segment when stating, “We have not been present in the premium segment,” in the same call.
All the new launches of the company like the XPulse 200 4V, XPulse 200 T, Xtreme 160R and the Xtreme 200S in the premium category, where it aimed for leadership, failed to do well.
Known for its high-power, inter-state muscle cruiser bikes which have been typically powered by 1,000cc and more, the bike launched by Hero has the smallest engine seen on a Harley ever.
Although market watchers were not pleased by the X440, the pricing of the product, however, was welcomed by everyone.
Kumar Rakesh, auto analyst, BNP Paribas India said, “Feedback, from some prospective buyers we interacted with, was mostly critical of X440 styling and power rating but was positive for pricing and torque rating.
“We see X440 diluting Harley-Davidson’s brand and with aggressive pricing by Triumph, we expect it to drive higher volume, once its dealerships are ramped up.”
Hero MotoCorp is preparing to sell the new Harley bikes through a network of 100 specific dealerships in addition to dealerships that sell only Harley bikes.
Hero will be competing against the premium bike segment leader Royal Enfield in addition to the new entrant Triumph and other rivals like Honda, Yezdi and Jawa.
Himanshu K Singh, research analyst, Prabhudas Lilladher said “We have seen Hero MotoCorp’s good product launches failing to find success in the market. Thus, successful execution of plans and strategies in premium categories is critical.”
