With the festive season setting in, the country’s largest two-wheeler maker Hero MotoCorp has decided to restart the production of their two premium bikes -- the Hunk and Xtreme. The move could see the company improving sales in the premium category which has halved so far this fiscal, reports CNBC-TV18’s Ronojoy Banerjee quoting sources.
It is learnt that the company restarted the production of these two motorcycles. As part of the companies efforts to migrate from Honda branded motorcycles to Hero branded bikes, they has stopped the production of these two motorcycles as a result of which between August and September there was barely any production for these two motorcycles.
The significance of restarting production of these two motorcycles is basically in the premium category we, where sales have been getting hammered in the recent past. This fiscal the overall sales in the premium category are about a little over 80000 as compared to well over 160000 in the same period last year.
Analysts in fact say that the significance of this lies also in the fact that the premium category may not be the high volume generator for a company like Hero Motocorp but they are certainly high margin products as far as the company is concerned.
Also company sources have said that starting next week there is likely to be new TV commercial in an effort really to spruce up the high end segment.
The company maintains that they expect a very good festive season.