Hero MotoCorp To Expand Scooter Range And Strengthen 125 cc Bike Segment, Says CEO
The company plans to introduce new petrol and electric scooter models while increasing the production capacity of its 125 cc bike, the Xtreme 125R, to meet rising demand.
Hero MotoCorp is preparing to expand its scooter lineup and strengthen its presence in the 125-cc bike segment to accelerate growth, according to CEO Niranjan Gupta.
The company plans to introduce new petrol and electric scooter models while increasing the production capacity of its 125-cc bike, the Xtreme 125R, to meet rising demand.
Gupta, during an analyst call, highlighted that significant updates are coming to the scooter range, including a full redesign of the Destini and the launch of new Xoom models in 125 cc and 160 cc variants within the current fiscal year.
In the electric vehicle sector, Hero MotoCorp will expand its portfolio to include mid-range and affordable EV options by the end of the financial year.
Gupta noted a strong sequential recovery in several bike segments, particularly the 125 cc category, during the June quarter.
"While we continued to maintain a very formidable market share in the 100 cc and 110 cc segments through brands like Splendor and Passion," he stated.
Gupta noted that the company has seen its market share in the 125cc segment increase from 13% in the fourth quarter of the financial year 2024 to 20% in the first quarter.
Glamour has increased market share, so has Super Splendor and of course, while Xtreme 125R has been able to bring in incremental customers into the dealerships, he stated.
"We are increasing capacity (of Xtreme 125R) and already it has gone up to almost around 25,000 per month. We are taking it up to almost 40,000 per month in the next couple of months as the product has received excellent response," Gupta said.
The company has strong competition in the 125 cc segment but remains confident of growing its presence, he said.
On business outlook, Hero MotoCorp CFO Vivek Anand said, "Going forward, we'll consistently grow volumes, thereby improving operating leverage; aggressively grow our Premium portfolio; continue to grow PAM business in double digits; intensify cost-saving initiatives across the value chain."
To sum up, the company is optimistic about the growth prospects of the domestic two-wheeler industry, he said.
"And with faster recovery expected in rural segment, ramp-up of 125cc portfolio and strong investment behind building power brands, we expect to grow ahead of the industry," Anand stated.
(With Input From PTI)
