Hero MotoCorp revives ‘Karizma’ brand, aims for wider play in premium segment

Niranjan Gupta, Chief Executive Officer, Hero MotoCorp, said the premium segment is growing very fast, and the growth rates were double that of the commuter segment last year.

“We are rapidly building a full portfolio in this segment, in line with our strategy to win in the premium segment. We are also giving a facelift to our current chain of 500 (dealership) outlets over the next eight quarters and will be renaming them Hero 2.0 stores. We will also be opening exclusive premium stores over the next few quarters. All of this is just not a strategy involving new products but a 360-degree approach that we have taken to win in the premium segment,” Gupta said.

However, he did not share a sales target or projected market share for this model.

It may be recalled that Hero MotoCorp, earlier known as Hero Honda, forayed into the premium segment in 2003 by launching Karizma, which was given a facelift in 2006. A year later, it was given a cosmetic upgrade and relaunched as Karizma R. This model was supplemented by another variant Karizma ZMR, which was equipped with a programmed fuel-injected engine. In 2017, the company decided to phase out this model due to lukewarm sales.

The specs

The new-generation Karizma will be taking on Suzuki Gixxer SF 250, Yamaha R15, and Bajaj Pulsar RS 200. It will be powered by a 210cc liquid-cooled single-cylinder engine, which churns out 25.5PS of power and 20.4Nm of torque. The DOHC 4-valve engine, which is OBD 2(On-Board Diagnostic) compliant, is mated to a 6-speed gearbox.

Other features include a fully digital instrument cluster, LED lights and indicators, dual-channel ABS, Bluetooth Connectivity, an engine kill switch, clip-on handlebars, slip and assist clutch system, a six-step monoshock, turn-by-turn navigation system, etc. The motorcycle’s instrument cluster contains information like gear position indicator, date, time, trip, odometer reading, fuel level, tachometer and speedometer readings.

When asked about the catchment areas for Karizma XMR, Gupta said, “This product is not just meant for tier-1 cities but also tier-2 where the aspiration of India is travelling down. There are some pockets of tier-3 cities as well. So it won’t be fair on our part to break it into tier 1, 2 and 3 cities.”

New models

Meanwhile, Hero MotoCorp plans to roll out new models and ramp up the sales network as it looks to have a substantial market share in the premium bike segment in the domestic market. At present, it has a minuscule market share – just 4-5 percent – in the premium bike segment, which has been growing at a rate of 20-25 percent per annum. It is also planning to roll out a new product every quarter in the next one year to enhance its presence in the 150cc to 450cc bike segment.

"The game for us (premium segment) has just begun. So, if we look at market share, it will probably be around 4-5 per cent but that's because it is just the beginning for us," Gupta told reporters. He added, “The company's job is to create a full portfolio of premium products very rapidly and it is being done.”