Hero MotoCorp Targets Growth in Under-Represented Segments

Hero MotoCorp aims to strengthen its presence in segments such as scooters, premium bikes, and electric vehicles, where it currently remains under-represented, company's CEO Harshvardhan Chitale revealed during an earnings call. The country's largest two-wheeler maker also looks to expand its presence in international markets and the parts and accessories business.

"While we take pride as a team in our volume leadership at Hero MotoCorp, we are all acutely aware of the opportunities that exist in some of the other categories, which are growing faster and where we are relatively under-represented," Chitale said in the analyst call.

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"Hence, we see a big headroom for growth and market share expansion in categories like scooters, in premium motorcycles, in global markets, in EV, and also above all, parts and accessories business because we are a company that has the biggest park size in the market," he added.

For the December quarter, the company reported a revenue of Rs 12,487 crore with a PAT of Rs 1,275 crore.

The company said it has sold 16.97 lakh units of motorcycles and scooters in the latest third quarter against 14.64 lakh units in the same period of last fiscal, a growth of 16 per cent.

Chitale stated that the company has one of the largest vehicle parks in the country.

"Hence, each of these five (segments) is going to be a big opportunity for growth, and this is where, as a team, we are focused on accelerating and gaining share," he added.

Its Chief Financial Officer, Vivek Anand, stated that over the next few years, the two-wheeler major would focus on executing and accelerating its growth ambitions.

"We will also focus on ensuring that our supply chain is flexible, robust and resilient. We've all seen some of the disruptions that, as an industry, we had to face due to various component crises and geopolitical issues," Anand said.

The company remains confident about the growth prospects of the two-wheeler industry and expects the industry to grow by double-digit growth during the current quarter, he stated.