Hero Moto plans to ride premium wave

Hero MotoCorp, the country’s largest two-wheeler maker known for its entry-level bikes, is looking to create a portfolio of premium motorcycles and scooters with the launch of multiple products in the next two years.

Chief executive officer Niranjan Gupta told ET that growing footprint in the premium two-wheeler segment is a priority for the company. Hero MotoCorp’s Splendor and Passion dominate the country’s entry-level motorcycles segment.

A larger chunk of the about ‘1,000 crore the company has earmarked for spending annually will be used for designing premium and electric vehicles to strengthen the company’s presence in these two categories, Gupta said.

The CEO, who was speaking on the sidelines of the launch of the 210cc Hero Karizma motorcycle, said the company will continue to build its presence in the premium segment with multiple launches over the next four to eight quarters. Hero Karizma is priced at ‘172,900 (ex-showroom).
“While I can’t specify the total number of products we have planned, there will be big launches that will then ensure that we can build the right premium portfolio and get our market share on that,” Gupta said, adding the company will cover the entire mid-weight category in the next two years.Hero MotoCorp has a market share of about 5% in the premium two-wheeler segment, the company said.At 4.73 million units, motorcycles less than 125 cc accounted for more than 90% of Hero MotoCorp’s sales in FY23. In the last few years, the company has inked partnerships with Harley Davidson and California-based Zero Motorcycles to increase its footprint in the premium category.

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