Hero MotoCorp is gearing up for highest ever model introductions in FY24 as it looks to consolidate market share, especially in the premium bike segment, said the company’s chief executive officer Niranjan Gupta.
The country’s largest two-wheeler maker plans to introduce nearly a dozen new motorcycles and scooters, including the return of the iconic Karizma and the first product under the Hero MotoCorp-Harley Davidson tie-up. In October 2020, Hero MotoCorp and American brand Harley-Davidson announced a partnership for the Indian market.
Post the announcement, shares of Hero Motocorp jumped over 3.5 percent intra-day on May 15 and traded near a three-month high. At 2:45 pm, the stock was trading at Rs. 2697.80 a piece on the National Stock Exchange.
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While Hero MotoCorp has leadership in the budget bike segment (100-110cc), it is looking to enhance presence in the 125 cc and also drive in models to bring in volumes; and focus on the premium segment bikes with power ranging between 150cc and 450cc.
"We’ll have product launches every quarter of this fiscal year. Probably this fiscal, we’ll see the maximum number of launches ever seen in the company’s history,” Gupta said in an analyst call. The company is bullish on growth prospects this year with plans to further enhance its market share across segments, he noted.
Earlier in May, Hero MotoCorp reported a standalone net profit for Q4FY23 at Rs 859 crore, registering a year-on-year (YoY) growth of 37 percent over Rs 627 crore reported a year ago. Revenue from operations came in at Rs 8,307 crore, rising 12 percent over Rs 7421 crore reported in the year-ago quarter.
”We are excited about the fiscal and expect to build on our market share and margin recovery. We have a host of new launches lined up, and we will be launching new products every quarter in this fiscal,” Gupta said.
The company has already announced its accelerated plans to roll out electric brand VIDA across the country with an aim to cover 100 cities in CY23. "At Hero, we have the widest and deepest distribution system in the country, and we will be leveraging the same to ensure our reach in the EV business,” Gupta stated.
Commenting on the business outlook, Gupta said the Indian economy continues to be resilient and is one of the fastest-growing major economies in the world, despite various challenges. "All the key indicators are moving in the right direction, and we expect the economy to outperform most other countries ... we do expect the two-wheeler industry to clock double-digit revenue growth this year,” he noted.
Hero MotoCorp currently commands around 51 percent market share in the overall motorcycle segment.
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