Two-wheeler major Hero MotoCorp is gearing up to expand its scooter range and consolidate its position in the 125 cc bike segment as it looks to grow faster than the competition, according to CEO Niranjan Gupta.
The company plans to roll out both petrol and electric scooter trims and also bolster the production capacity of 125 cc bike Xtreme 125R to cater to enhanced demand.
Two-wheeler major Hero MotoCorp is gearing up to expand its scooter range and consolidate its position in the 125 cc bike segment as it looks to grow faster than the competition, according to CEO Niranjan Gupta.
The company plans to roll out both petrol and electric scooter trims and also bolster the production capacity of 125 cc bike Xtreme 125R to cater to enhanced demand.
"There will be action on the scooters front and action will be big on both ICE and EV side. The Destini full-body change will be unveiled very soon and then it will be followed by Xoom models - 125cc and 160cc - within this fiscal," Gupta said in an analyst call.
Coming to the EV segment, where the company will undertake portfolio expansion into mid- and affordable segments within this financial year, he added.
Gupta said the company has seen a sharp sequential recovery in many of its bike segments, especially in the 125cc in the June quarter.
"While we continued to maintain a very formidable market share in the 100 cc and 110cc 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 per cent in the fourth quarter of FY24 to 20 per cent in Q1 FY25.
Glamour has increased market share, so has Super Splendor and of course, 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.