Hero MotoCorp to benefit from higher rural share; downtrading to help

Market leader's share in the economy segment improved by 600 basis points in FY20

While the slowdown has impacted all players in the two-wheeler space, Hero MotoCorp — with a higher share of volumes from entry-level segments and the rural marketplace — is better placed than listed peers, TVS Motor Company and Bajaj Auto. 

The company announced it is commencing operations from May 6 in a graded manner at three of its manufacturing plants — Gurugram/Dharuhera  (Haryana), Haridwar (Uttarakhand), and Neemrana (Rajasthan). The company is also opening its network of dealerships and customer touchpoints gradually this week. 

While the overall sentiment is weak due to multiple headwinds in the form of Bharat Stage-VI transition,