New-age products are on the horizon for the company
In recent years, luxury bicycles and electric scooters have experienced significant growth in the urban and semi-urban markets. Hero MotoCorp, the world’s largest motorcycle manufacturer, is aware of this emerging trend and is working to develop upcoming products for the future. This is said Pawan Munjal, executive chairman of the company.
“Next-generation two-wheelers will appeal to a broader market, where the electric vehicle segment, premium bikes, and scooters are likely to be the main categories,” Munjal said in the company’s recent annual report. The company partners with global brands such as Harley-Davidson and Zero Motorcycles to develop a premium line of motorcycles and electric two-wheelers for Indian consumers.
“The premiumization of our product portfolio is gaining momentum, with its feature-rich XTEC series performing well and gaining market share across all segments. Our R&D ecosystem – which includes the Centre for Innovation and Technology at Jaipur in India and the Hero Tech Centre, Germany – develops contemporary, state-of-the-art, and technologically advanced mobility solutions for our customers,” Munjal added.
A mid-size bike made its debut earlier this month when the Hero-Harley partnership announced the X440. In accordance with the licensing agreement between the two brands, this is the first premium motorcycle produced by the two companies. Denim, Vivid, and S are the three motorcycle variants available, with the X440 starting at 2.29 lakh (ex-showroom) and increasing up to 2.69 lakh (ex-showroom).
Furthermore, Hero will leverage Zero Motorcycles’ expertise to create innovative and high-performance EVs through the partnership with the US company. Diversifying its EV portfolio will give Hero a competitive edge and allow it to capture a larger market share. “The development of VIDA V1 is a step towards sustainability. Additionally, we have partnered with ZERO Motorcycles and this collaboration combines Zero’s expertise with Hero MotoCorp’s manufacturing, sourcing, and marketing reach,” said Munjal.
Niranjan Gupta, CEO of Hero Motocorp, echoed a similar view, saying the luxury two-wheeler segment has huge growth potential. Compared to the company’s Entry and Deluxe segments, this segment grew at twice the rate last year.
“ It’s not that long since we’ve been here. Over the last 3-4 years we have developed a comprehensive portfolio of premium products and launched the Xtreme and Xpulse brands. More premium product launches are planned for this year than ever before,” added Gupta.
In the area of electric vehicles, the company hopes to expand its first electric scooter, Vida V1, to more than 100 cities by the end of the current fiscal year 2023/24. The company is committed to “establishing leadership in electric vehicles” and is actively working to make EV products accessible to all by leveraging its extensive distribution network, he said. “Our first series of electric vehicles was launched in the premium segment, but we will soon expand our portfolio to the mid-range and affordable segments,” emphasized Gupta.
Expansion of revenue streams
In the future, the company plans to diversify and open up various revenue streams. Gupta sees global business as a major growth opportunity. Approximately 25% of revenue is generated by global sales in the average industry. In our case, it represents only 5% of our revenues,” he stated.
Hero plans to expand beyond its current 47 countries in 2023-24, with a focus on Africa and the Middle East. This is due to economic growth and increased demand for two-wheelers. The company also aims to premium its brands in Latin America and Asia. “Taking advantage of our established presence in 47 markets, we will focus on rapidly scaling up in some key markets while expanding in others. We will also continue to explore business feasibility in other areas. Through these market expansion and product award initiatives, we hope to expand and establish ourselves in new countries. We hope to capitalize on economic opportunities and strengthen our position as a global player in the motorcycle industry,” said Gupta.
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