Hero MotoCorp To Hike Motorcycle, Scooter Prices By Up To Rs 1,500
Nearly one in three motorcycles sold in India today sport a Hero logo—a far cry from the nearly 50% market share the Splendor maker enjoyed just five years ago.
Hero MotoCorp Ltd. has effected a price hike for some of its two-wheelers, amid a resurgence in sales.
India’s largest two-wheeler maker will raise by up to Rs 1,500 ex-showroom prices of select motorcycles and scooters, according to exchange filing on Monday. That was necessitated due to higher input costs. The exact quantum of price hike will vary depending on specific model and geography.
Nearly one in three motorcycles sold in India today sport a Hero logo—a far cry from the nearly 50% market share that the Splendor maker enjoyed just five years ago. That’s due to rural slowdown, as well as premiumisation—a segment where Hero MotoCorp has historically lagged.
But a revival of sorts is happening.
The New Delhi-based company recorded its best-ever annual performance in the fiscal ended March 31, 2024, due to a long-awaited sales revival in the hinterland.
The company's net profit rose 36% year-on-year to Rs 3,968 crore as revenue increased 11% to Rs 37,456 crore for the full fiscal. The operating profit—or earnings before interest, tax, depreciation and amortisation—rose 32% year-on-year to Rs 5,236 crore, even as the company enjoyed a profitability margin of 14.03%.
"Our fiscal prudence and strategic actions ensured that our financial performance has been robust, resulting in highest-ever annual revenue and profits," said Chief Executive Officer Niranjan Gupta in a statement. "We see multiple tailwinds for the sector over the upcoming quarters. We will be driving market share gains on the back of our launches in premium and 125 cc segment done in fiscal 2024.”
"The coming year will see us taking big strides in EV, through product launches in mid and affordable segment. Overall, we see a very positive outlook for upcoming years.”
Premium Play
Hero MotoCorp, whose bread-and-butter 100 cc motorcycles have found fewer takers with every passing month, has stepped up its premium play—so much so it now retails six motorcycles in the 200-400 cc segment. Additionally, the company aims to open 100 ‘Premia’ stores by the end of 2024, according to an investor presentation. Only 15 are operational at present.
Shares of Hero MotoCorp. fell as much as 1.14% during the day to Rs 5,390 apiece on the NSE. It was trading 0.11% higher at Rs 5,458 apiece, compared to a 0.20% decline in the benchmark Nifty 50 as of 10:38 a.m.
