It seeks to expand its position in premium two-wheeler sector and create competencies in the electric vehicle area
According to the company's Annual Report for 2020-21, Hero MotoCorp is optimistic about development possibilities in both local and foreign markets as it seeks to expand its position in the premium two-wheeler sector and create competencies in the electric vehicle area.
The country's largest two-wheeler manufacturer, which reached the milestone of 100 million total output in January this year, is now gearing up for the next phase of expansion and growth.
"As the world recovers from the second and a significantly severe wave of Covid-19, we are upbeat about the short-term growth and remain optimistic about the long-term view. We are well prepared to meet rising consumer demand and will be able to grow our business as and when the economic situation revives and re-emerges," Hero MotoCorp Chairman and Chief Executive Officer Pawan Munjal noted.
For the near and medium terms, the company is focussed on delivering relevant products and in line with the overall sustainability of the company, he informed the company's shareholders. With a strong pipeline of products, including premium motorcycles and scooters, Hero MotoCorp is confident of keeping the customers excited, Munjal said.
"The future will have to be imagined today, so it can be delivered tomorrow. As I have often said, we are aggressively working towards multiple electric vehicle (EV) programmes and platforms and also on various other modular mobility solutions. Sustainability remains critical to our ethos and we will continue to work in line with these principles," he added.
Elaborating on the company's premium segment plans, he noted that the partnership with Harley-Davidson is an important stepping stone in the road to the 'premiumisation' of the company's brand and product.
"From building premium retail experience outlets to premium ownership models, Hero MotoCorp is enhancing capabilities and preparing itself to expand its presence in the premium two-wheeler segment," Munjal noted.
The two-wheeler major is also in the process of developing a range of premium products, both under Harley and Hero MotoCorp brand names, he added. On EV space, Munjal said the company's partnership with Gogoro Inc, which was announced earlier this year, is one of global significance. Gogoro Inc is a Taiwanese EV company with the world's largest battery-swapping network.
"This partnership will be a key to the propagation of electric vehicle charging technology and network. I would like to share that our relationship with Ather Energy in which we have a 38 per cent stake is actively evolving into a partnership on multiple fronts. This is going to pave our way into being a market leader in the EV space," he noted.
Commenting on global markets, Munjal said the company aims to strengthen its focus on the premium motorcycles and scooters segment in Bangladesh, Nepal, and Latin America.
"In the African markets we are revamping our product portfolio, growing our network, and establishing our brand presence," he added. The two-wheeler major noted that the motorcycles and scooters remain the most cost-effective and fastest mode of last-mile connectivity, and is an income enabler for many.
"A preference for personal mobility induced by the pandemic could aid near-term motorcycles and scooters demand, which has been impacted by repeated waves of Covid-19," it added. Hero MotoCorp sold a total of 57,91,539 two-wheelers in the 2020-21 fiscal amid Covid-19 disruptions.