Hero MotoCorp plans to boost growth in under-represented segments: CEO

Hero MotoCorp aims to strengthen its presence in segments such as scooters, premium bikes, and electric vehicles, where it currently remains under-represented, according to the company's CEO Harshvardhan Chitale.

The country's largest two-wheeler maker also expects 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 an analyst call.

"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.

"And those issues are not over. There will be many more that will come along the way. As a company, we have navigated this very well, but we need to always be prepared and make sure we are agile and have a robust supply chain," he stated.

So that will remain the company's focus as well, he added.

"Moving forward, our journey of investment behind growth will continue. We remain consistent in our commitment towards investing in premium scooters, EV portfolio, global business, and to improve customer service in stores with Hero 2.0 and Premia," Anand stated.

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.

"The current demand trend is broad-based across our portfolio, and with new product launches supported by investment behind brand building, we expect to grow ahead of the industry," Anand said.

The industry overall has been growing in double digits since last October, he said.

"We expect the same trend to really continue as we get into the next year. However, as we get into the second half of the year, because of the high base, we see some moderation in growth," he added.

So overall, the industry, in the next financial year, is likely to grow in high single digits, Anand stated.