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According to its recently appointed CEO, Niranjan Gupta, Hero MotoCorp is planning to extend its electric two-wheeler portfolio while updating its existing sales infrastructure to improve premium play as part of its future development ambitions.
He outlined the company's three mid-term targets as reinforcing its presence in the luxury category, increasing the commuter segment, and gaining leadership in the electric two-wheeler segment.
"The way we are going to move forward in these three segments, speed will be the name of the game," Gupta, who was appointed CEO on May 1, said in an interview here.
Prior to becoming CEO, he served as the company's CFO.
In the electric two-wheeler market, the business intends to develop new entry-level models to appeal to a broader range of customers.
"Before March-end, we will actually go to 100 cities...so up to March, it will be about 100 cities, and then thereafter, in the next four quarters, it will be about putting a product in the middle segment and the bottom segment of electric scooters," Gupta said in an interview.
He explained that the corporation is currently positioned at the high end with the VIDA V1 series as a deliberate strategic decision.
Gupta noted that now that the brand has been established, it is time to extend the product line.
In response to a question, he stated that the EV startup area has become quite crowded, and that due to regulatory changes (a reduction in subsidies under the FAME plan), there would be consolidation in the segment.
"We believe there will be consolidation...and when that happens, it will narrow down to fewer players," Gupta added.
Despite the predicted market consolidation, the firm, with its multiple tie-ups and product plans in place, is well positioned to move forward, he noted.
In addition to aiming for leadership in the electric two-wheeler industry, Gupta stated that the business intends to expand its position in the luxury segment (160-450 cc).
He stated that the current year would see the most number of all new premium items introduced than any previous year in the company's history.
"There are two things we're doing. One, we are going to update some of our current stores to what we call hero 2.0, which will be a makeover of the current stores, including the hardware and software as well as this aspect of the current stores', the CEO stated.
The second component of the physical stores will be the establishment of select exclusive boutiques that will house premium models.
Gupta indicated that the corporation intends to gradually renovate 35-40% of the 1,000 big dealerships.
"So, a combination of these two will then ensure, along with digital...that we provide a different level of retail experience to buyers," he continued.
He stated that Hero MotoCorp will focus on the full premium range, from 160 to 450 cc.
In addition, the business plans to grow the commuter bike market (100-125 cc).
The total expansion of the vertical will eventually benefit the corporation, which leads the segment with a 65-70 percent market share.
Gupta also underlined the importance of pouring "disproportionate" resources into 8-10 overseas markets to accelerate their growth.
"We are in over 40 markets...and what we are going to do is double down on 8-10 big markets out of those and disproportionately put resources there, thus moving those on a faster track while catering to the rest of the markets," he explained.
He stated that the corporation will concentrate on areas such as Mexico, Nigeria, Bangladesh, and Colombia.
"So, in 8-10 of these markets, we are going to double down on our efforts," Gupta added.
The company's global business now accounts for only 5% of its sales.
