Hero MotoCorp: Boosting EV, Premium Segments & Global Growth

New Delhi, Jan 15 (PTI) Hero MotoCorp is aiming to expand its play in the electric two-wheeler segment while also strengthening presence in the premium segment as part of its overall growth strategy for the mid-term, CEO Niranjan Gupta said on Wednesday.

The country's largest two-wheeler maker is also looking to bolster presence in the global markets while enhancing digital and AI elements across its entire operating ecosystem.

The company, which currently sells electric products under Vida brand, is looking to add electric models in the first quarter of next fiscal year to cater to the diverse customer segments.

"In January, we launched Vida V2 which is the affordable product that we launched in the sub Rs 1 lakh price segment. More action is lined up in the EV portfolio in the first quarter of the next fiscal," Gupta told reporters in an interaction here.

The company also plans to expand sales infrastructure for EVs across the country, he added.

The two-wheeler major already has about 400 outlets across 250 cities.

Gupta said Hero MotoCorp's market share in EVs has grown to about 5 per cent from around 2 per cent earlier.

"Within that 5 per cent if you take some of the cities, we've actually crossed 10 per cent. (In) many cities we have also crossed 20 per cent market share. So this is a journey which is starting to show the results, but still is a long way, as I keep saying that EV is a marathon, not a sprint... we are well on our way on that," Gupta said.

The company has started addressing the cost structure on EVs as it aims for leadership in the segment in the long term, he added.

Gupta noted that companies also need to adjust their business models to operate without subsidies.

On the company's strategy regarding the premium segment, Gupta said the two-wheeler maker is working with a 360-degree perspective to grow in the vertical.

The company is building a strong portfolio of premium products across five brands -- Xpulse, Xtreme, Mavrick, Harley Davidson, and Karizma, he added.

Besides, the two-wheeler major is also expanding the number of its premium sales outlets, Gupta said.

"We have already set up 60 premia stores. We will soon cross 100, I assume, before June-end, and then the journey will be again to increase that number as well," he said.

The company is also upgrading its existing dealerships, having already completed transition of about 700 stores, Gupta said.

Asked about the demand scenario in the domestic market, he noted that significant rural recovery is expected over the next 4-8 quarters.

Gupta said rural regions were more impacted than urban areas post-Covid pandemic.

"So it has taken time for the confidence level to come back... also there's a lot of informal, unstructured, unorganised employment... that has made a comeback... we have seen green shoots and ingredients... that is why in the next 4-8 quarters we could see rural bouncing back in a big way," he noted.

On the company's plans regarding its overseas business, he acknowledged that the growth was a bit slow in the past 7-8 years as with the young R&D ecosystem the two-wheeler major was not able to cater to region-specific products.

He noted that the company's R&D capability has grown and products catering to specific geographies are being rolled out.

"We have said that 80 per cent of our resources of global business will focus on top 10 markets and that strategy has helped us galvanise and channelise our capital allocation... now we are starting to see some results of that," Gupta said.

For the first nine months, the company's global business has grown 40 per cent, he added.

Hero MotoCorp has presence in 48 countries.