Hero MotoCorp plans product launches to meet rising demand | The Financial Express

Hero MotoCorp plans product launches to meet rising demand

Typically, automakers stock up for September and October to prepare for the festive season.

Hero MotoCorp plans product launches to meet rising demand
Hero MotoCorp expects the positive momentum to continue during the fourth quarter of the FY2023.

With the demand for two-wheelers picking up, market leader Hero MotoCorp is readying a host of new launches. After a multi-quarter lull in offtake, the demand for two-wheelers seems to be back during the recently-concluded festive season.

Hero MotoCorp, the maker of models like Splendor and Passion, is keen on regaining lost market share in the 125 cc segment, which is tightly controlled by Honda Motorcycle and Scooter India (HMSI). Pune-based Bajaj Auto is also looking to have product action in this segment.

“Festive retails were 95% of the pre-Covid festive period, but on a full-year basis we are far away from the pre-Covid levels. Our volumes were 20% higher than last year during the festive days of this year,” Hero MotoCorp CFO Niranjan Gupta said.

The company further claimed that the robust demand pick-up during the festive season helped bring down the inventory within the channel, including with the dealers, to one of the lowest levels in several months. Company officials, however, declined to provide absolute volumes for the 32-day festive period.

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Typically, automakers stock up for September and October to prepare for the festive season. Hero MotoCorp’s despatches to its dealers during the two months dropped 8% to 950,515 units as against 1.03 million units dispatched during the same two months last year.

“We are looking to launch premium models over the next few quarters. Over the next two years there will be volumes in the volume and profitable segment of the motorcycle segment, including the platform which we are developing jointly with Harley-Davidson,” Gupta added.

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The company further claimed that the joint product with Harley-Davidson is in ‘advanced stages’ but declined to give a timeline for the launch. It has also been working across the motorcycle category right up to 400cc in the sports, adventure and racing segment. There will be model launches every year in the premium segment.

“We continue to be very strong in the entry segment and in the deluxe 100-110cc segment. The entry and 110cc segment will be about maintaining our position. In the 125cc segment, we will recover our market share and in the premium segment we will build on the portfolio we are going to launch,” Gupta added.

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First published on: 05-11-2022 at 00:45 IST