The domestic two-wheeler industry is expected to witness a double-digit revenue growth next fiscal with demand for premium models anticipated to gain further momentum, according to Hero MotoCorp CEO Niranjan Gupta.
The country's largest two-wheeler maker, which reported a total income of ₹10,031 crore in the October-December quarter this fiscal, also expects the entry level segment to do better going ahead.
"As far as the demand is concerned, as we have been saying, we do expect the industry to grow double digit on revenue in the coming year at the least," Mr. Gupta said in an analyst call.
He noted that in the domestic two-wheeler space there is a shift taking place towards premiumisation with buyers looking for feature-rich trims.
Mr. Gupta stated that the entry level bike vertical, which has seen muted sales over the last few years, is also on a recovery path.
"So, it's not just about the top end of India which is growing, you can see aspirations of people growing," Mr. Gupta stated.
He noted that demand in the rural areas has improved considerably.
"At the bottom of pyramid, the heavy capex spend that's been happening, the digital inclusion that's been happening, the hospitality industry that you can see clearly which is lifted up, it's actually lifting the sentiment of the consumers of the bottom end," Mr. Gupta said.
He further said: "We clearly see the positive signals which are emanating from the rural sector as well and we will see in the coming quarters growth picking up from that segment."
Elaborating on the company's plans to upgrade sales outlets to sell premium segment models, he noted that the two-wheeler major has already upgraded 300 dealerships in the country so far.
"By March end we'll have 400 (upgraded sales outlets), and next year we'll cross 500 2.0 stores (upgraded outlets) along with 100 Premia stores," Mr. Gupta stated.
Hero MotoCorp opened its first premium-exclusive showroom under brand name Premia in October last year.
All of this then provides the necessary arsenal for the company's premium portfolio to grow, Mr. Gupta said.
"We have been taking a lot of actions in the premium segment. Our early success that we have seen on Harley X440 and Karizma continues," Mr. Gupta stated.
The company has also launched a new model Mavrick 440 with deliveries expected to commence in April.
"That will be boosting further our premium portfolio which is already looking very, very formidable," Mr. Gupta said.
In October 2020, Hero MotoCorp and Harley-Davidson announced a partnership for the Indian market.
The deal envisages Hero MotoCorp developing and selling a range of premium motorcycles under the Harley-Davidson brand name in the country.
On plans to expand VIDA products, Hero MotoCorp Chief Business Officer Emerging Mobility BU Swadesh Srivastava said: "We're going to be playing in three price points within the quarter one of FY25, which includes affordable and the mid segment with a very competitive offering in the market. With that in place, we definitely see that we'll have the right positioning to scale up fast in FY25."
