According to Hero MotoCorp CFO Niranjan Gupta, a bike co-developed by Harley-Davidson and Hero could be released in the next two years. The launch is a part of Hero MotoCorp’s plans to improve its position in the premium market. The largest two-wheeler manufacturer in the nation, which leads in the 100-110cc budget bike segment, is attempting to introduce new models to boost sales and profitability in the 160cc and higher market.
In an investor call, Gupta said, ‘You will see models over the next two years which are in the volume category and the profitable area of the premium as well, including the platform that we are creating collaboratively with Harley’. Every year, the business will introduce new models in this market sector as it builds a solid pipeline of high-end items, he continued. The medium-term increase in profitability and market share will be aided by this, according to Gupta.
A cooperation between Indian motorcycle manufacturer Hero MotoCorp and American brand Harley-Davidson was announced in October 2020. As part of the agreement, Hero MotoCorp will create and market a line of high-end bikes in the nation under the Harley-Davidson brand name. It will take care of the Harley bikes’ service and component needs. Additionally, it is required to sell Harley-Davidson clothes, riding gear, and accessories through a network of dealers that are only authorised to sell the Harley-Davidson brand.
Further explaining, Gupta stated that over the last few quarters, the company has been concentrating on expanding its Parts, Accessories, and Merchandise (PAM) sector. ‘ The PAM business’s first-half sales of Rs 2,300 crore represented an increase of 45%. We want to raise it to 15%,’ he continued. ‘Business revenue now makes up 13.7% of total revenue. Gupta mentioned challenges related to inflation and rate rises while discussing the business prospects. We do, however, think that the inflation and rate cycle may have reached its apex right now’.
‘Return of growth in developed economies may take some time, but India is obviously much better positioned with a solid consumption base, favourable demographic profile, and substantial headroom for per capita spending relative to other nations,’ he added. ‘ The recent uptick in spending across categories throughout the holiday season reflects the restoration of consumer confidence and portends well for future industry growth’, according to Gupta.
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