The domestic two-wheeler market is expected to witness a double-digit revenue growth in the next fiscal year (FY25), according to Hero MotoCorp CEO Niranjan Gupta. He attributed this optimism to the increasing demand for premium models and an anticipated improvement in entry-level two-wheeler sales.
Premiumisation of the market
Gupta said that there is a shift taking place in the domestic two-wheeler space towards premiumisation, with buyers looking for feature-rich trims. He cited the early success of Hero MotoCorp’s Harley X440 and Karizma models as examples of this trend.
He also said that the company is taking various actions to strengthen its premium portfolio, such as upgrading its sales outlets, opening exclusive showrooms under the brand name Premia, and partnering with Harley-Davidson.
Recovery of the entry-level segment
Gupta stated that the entry-level bike segment, which has seen muted sales over the last few years, is also on a recovery path. He noted that demand in the rural areas has improved considerably, thanks to the heavy capex spend, digital inclusion, and hospitality industry.
He said that the company expects growth to pick up from this segment in the coming quarters, as it sees positive signals from the rural sector. He added that the company has a strong presence in this segment with its popular models like Splendor and HF Deluxe.
Hero MotoCorp Outlook for FY25
Gupta expressed confidence that the two-wheeler industry will grow double digit on revenue in FY25, as he expects demand to remain robust across segments. He said that the company is well-positioned to leverage this opportunity with its diverse product portfolio, wide distribution network, and customer-centric approach.
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