Hero MotoCorp Targets Enhanced Market Share and Business Growth

Hero MotoCorp Targets Enhanced Market Share and Business Growth

Hero MotoCorp, the largest two-wheeler maker in India, is experiencing a rebound in its margins, reaching pre-Covid levels. The company is now focused on sustainable growth and enhancing market share across various segments. The upcoming quarters will see the launch of new products, including the highly anticipated Harley-Davidson X440, which has already garnered over 25,000 bookings. Additionally, Hero MotoCorp aims to introduce its electric vehicle range in 100 cities by the end of this year. CEO Niranjan Gupta expressed confidence in achieving clear leadership in the electric vehicle vertical. With an overall market share of around 35%, the company is poised for continued success. Gupta highlighted the company’s determination to regain growth and market share after facing challenges during the pandemic. The margin of Hero MotoCorp’s ICE (internal combustion engine) business has recovered to 14.5%, reflecting a return to pre-Covid levels. Gupta emphasized the importance of future growth and market share expansion through multiple product launches in the coming quarters. During the Covid-19 period, the company experienced a decline in margins, which reached around 11.5%. In the first quarter of the current fiscal year, Hero MotoCorp reported a consolidated net profit of Rs 701 crore and revenue of Rs 8,851 crore. The company remains optimistic about future demand for the Harley-Davidson X440 and plans to ramp up capacity to meet customer requirements. Gupta mentioned discussions with Harley-Davidson about portfolio expansion and exploring new geographies. Hero MotoCorp has already covered 36 cities and aims to expand its presence to 100 cities by the end of this year. Gupta reaffirmed the company’s goal of achieving EV leadership. He also commented on the positive impact of government spending on income demand, employment, and the overall two-wheeler industry. The company expects double-digit growth in the upcoming festive season, driven by factors such as a pause in interest rate hikes by the RBI, increased income in the hands of consumers, and favorable monsoon conditions.

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TIS Staff

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