CEO of Hero MotoCorp optimistic about recovery of entry-level motorcycle sales in FY25

Hero MotoCorp CEO believes sales of premium motorcycles will continue to grow in FY25, while entry-level models will see a recovery. According to PTI, Niranjan Gupta, the CEO of Hero MotoCorp, expressed hope during an analyst call that the Indian two-wheeler industry will witness a double-digit revenue growth in FY25. The quarterly earning for Hero MotoCorp was reported at ₹10,031 crore in the October-December quarter of this fiscal. This surge in revenue is attributed to the growing demand for premium motorcycles and scooters across the country.

Despite the increasing popularity of premium motorcycles, entry-level two-wheelers are still dominating the Indian two-wheeler market. However, Hero MotoCorp CEO Gupta noted that these entry-level models have faced sluggish growth, mainly due to muted demand in the rural market. Gupta remains optimistic as he believes that the situation will improve in the next fiscal year, with signs of recovery already evident in the rural sector.

To cater to the growing demand for premium models, Hero MotoCorp has been upgrading its sales outlets. The company aims to upgrade a total of 400 sales outlets across India by the end of the fiscal year, with plans to introduce 500 2.0 stores and 100 Premia stores in the coming year. The introduction of the Premia outlets under the brand name Premia aligns with the company’s strategy to boost its premium portfolio.

In addition to focusing on premium motorcycles, Hero MotoCorp is also planning to expand its Vida portfolio in the next financial year. Swadesh Srivastava, Chief Business Officer of Emerging Mobility BU, announced plans to introduce new models under the Vida portfolio in the first quarter of FY25. By targeting three price points, Hero MotoCorp aims to scale up its presence in the electric scooter market.

With the anticipation of a double-digit revenue growth in FY25 and the implementation of various strategies to cater to both premium and entry-level segments, Hero MotoCorp is poised for further expansion and success in the Indian two-wheeler industry.