Expect momentum building on demand side moving ahead: Hero MotoCorp

Hero MotoCorp expects demand momentum for two-wheelers to build up further in the domestic market with economic indicators remaining positive, according to a top company executive.

The country's largest two-wheeler maker, which recently announced its foray into the European market, is revamping its sales infrastructure and is aiming to have at least 100 premium retail showrooms in the next six months.

"As far as the economy is concerned, we know about the global geopolitical issues that are going on, however, the Indian economy continues to be resilient and is one of the fastest growing major economies in the world," Hero MotoCorp CEO Niranjan Gupta said in an analyst call.

All the indicators are in the positive direction amid a strong consumer confidence index, he added.

"While the monsoon has been patchy in parts, if you see the Rabi crops have been pretty good as compared to the last year. The festive season has started off very well and overall we do see momentum building on the demand side as we move forward," Gupta said.

As per the last SIAM data, total two-wheeler wholesales rose to 18,95,799 units in October, a 20 per cent increase from 15,78,383 units in the same month last year.

However, two-wheeler retail sales witnessed a 13 per cent decline to 15,07,756 units last month, as against 17,25,043 units in the year-ago period.

Commenting on the sales infrastructure revamp, Gupta said the company has launched its first premium store -- Premia -- recently and would now expand the number quickly.

"Over the next six months, we will get to 100-plus stores. Similarly, the facelift of our current stores is on a very rapid path, from 20 in March we are now at 200-plus Hero 2.0 stores just in 7 months - almost upgrading at the rate of one store per day, and we plan to get to 500 in the next six months," he added.

On plans regarding the EV business, Gupta said the company is on track to establish a presence in over 100 cities.

"From the production side, we are now clocking more than 1,000 units per week in the last three-four weeks and we are going to scale it up continuously as we move forward," he added.

More importantly, the infrastructure building is happening at a rapid scale whether it is dealers, or it is cities, or it is charging, and therefore all of that is getting ready for the takeoff, Gupta noted.

Hero MotoCorp had forayed into the electric segment under the VIDA brand in October 2022.

The company rolled out the electric scooter range from its Chittoor-based plant in Andhra Pradesh.