Hero MotoCorp wants a larger pie of the premium 2-wheeler market
The 2-wheeler major is increasing its focus on the premium end of the market that has potential to improve its margins.
- Jan 23, 2024,
- Updated Jan 23, 2024 5:48 PM IST
Two-wheeler major Hero MotoCorp is eyeing a bigger share of the premium market as it increases its presence in the segment. The company that sales nearly 5.5 million two-wheelers a year, is expecting demand for premium bikes among Indian consumers to surge rapidly in coming years, says a top executive.
In its bid to cash in on the trend, Hero MotoCorp today unveiled Mavrick 440 - a premium bike developed jointly by Hero Global Center for Innovation and Technology and Hero Tech Center Germany. While it has kept the price under veil, the model will be open for pre-booking from February.
In the recent past, the company has launched two new premium bikes in India to add muscle to its presence in the fast growing segment. Last year, it launched Harley Davidson X440 in the upper premium segment with an ex-showroom starting price of Rs 279,500. It also launched Karizma XMR to encash the popularity of the brand in India market. It was launched at a starting ex-showroom price of Rs 179,900.
According to Niranjan Gupta, chief executive officer of Hero MotorCorp, the premium bike segment is growing rapidly - with overall industry sales surging six times over the last decade. The market size is currently 800,000 units a year and is soon expected to cross the 1 million-mark. Further, growing its presence in the premium segment will also help Hero improve its EBITDA (earnings before interest, tax, depreciation & amortisation) margin, he says.
Emphasising on the changing consumer trends and Hero’s improving clout in the premiumisation play, Gupta says that currently Indian consumers are choosing more than 75 per cent of its two-wheelers from the upper most variant.
The company today also launched a new mass market model - Xtreme 125R - to keep its core business segment intact. Priced at Rs 95,000 (ex-showroom starting price in Delhi) the model is the first from Hero stable in 2024.
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Two-wheeler major Hero MotoCorp is eyeing a bigger share of the premium market as it increases its presence in the segment. The company that sales nearly 5.5 million two-wheelers a year, is expecting demand for premium bikes among Indian consumers to surge rapidly in coming years, says a top executive.
In its bid to cash in on the trend, Hero MotoCorp today unveiled Mavrick 440 - a premium bike developed jointly by Hero Global Center for Innovation and Technology and Hero Tech Center Germany. While it has kept the price under veil, the model will be open for pre-booking from February.
In the recent past, the company has launched two new premium bikes in India to add muscle to its presence in the fast growing segment. Last year, it launched Harley Davidson X440 in the upper premium segment with an ex-showroom starting price of Rs 279,500. It also launched Karizma XMR to encash the popularity of the brand in India market. It was launched at a starting ex-showroom price of Rs 179,900.
According to Niranjan Gupta, chief executive officer of Hero MotorCorp, the premium bike segment is growing rapidly - with overall industry sales surging six times over the last decade. The market size is currently 800,000 units a year and is soon expected to cross the 1 million-mark. Further, growing its presence in the premium segment will also help Hero improve its EBITDA (earnings before interest, tax, depreciation & amortisation) margin, he says.
Emphasising on the changing consumer trends and Hero’s improving clout in the premiumisation play, Gupta says that currently Indian consumers are choosing more than 75 per cent of its two-wheelers from the upper most variant.
The company today also launched a new mass market model - Xtreme 125R - to keep its core business segment intact. Priced at Rs 95,000 (ex-showroom starting price in Delhi) the model is the first from Hero stable in 2024.
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