The country's largest two-wheeler maker Hero MotoCorp Wednesday said it is eyeing leadership position in the premium motorcycle segment over the next five years.
The company, which on Wednesday expanded its premium bike range with launch of three new models priced between Rs 94,000 and Rs 1.05 lakh (ex-showroom Delhi), aims to bring in new models ranging up to 400-450 cc (middle weight) to consolidate its position in the segment.
"Clearly, we want to be either number one or very close to becoming number one. I think that is the spirit in which we are looking at in this segment.
"In whatsoever segment we have operated, we have been number one, so there is no reason why we should settle for anything less. But it cannot happen overnight, it will take certain effort, it will take certain level of investment," Hero MotoCorp head of sales and after sales Sanjay Bhan told reporters here.
The company would gradually ramp up its presence in the segment leading to leadership position over the next 4-5 years, he added.
While Hero MotoCorp is the leading player in the entry level and commuter segments of below 150 cc, it does not have a strong presence in the premium segment.
When asked if the company would come up with new set of dealerships to sell premium bikes, Bhan said the company is enhancing look and feel of its existing outlets.
"There is need for us to evolve and our showrooms are getting more premium in nature. In the next 15-20 months we will obviously also enhance the look and feel of our showrooms. we are also enhancing skill sets of the people who are going to sell these premium products," he noted.
The company has already trained employees in over 800 of its dealerships. Hero MotoCorp has close to 6,500 sales touch points across the country, including 1,000 full fledged dealerships.
The company has not been present in premium motorcycle segment since 2013.
When asked about inventory levels, Bhan said it has been now brought down to normal range of six weeks.
Hero MotoCorp CFO Niranjan Gupta said the company expects growth to come back in second half of the current fiscal.
He said factors like pre-buying before BS VI emission norms kick in, festive season and forecast of a normal monsoon and easing of liquidity would help the industry recover during the second half of the current fiscal.
Gupta added that the company is now focussing to consolidate its position on 125-cc scooter segment, which has been showing positive growth.
The two-wheeler major, which already has a dominant position in the entry level and commuter segments, introduced the 200-cc X Pulse 200T priced at Rs 94,000, adventure bike X Pulse 200 tagged at Rs 97,000 and Rs 1.05 lakh (with fuel injection).
It also drove in Xtreme 200S priced at Rs 98,500 (all prices ex-showroom Delhi).
The company said it will soon commence bookings for the premium bike range with retail sales expected to start in a few weeks.
With the three new bikes, Hero MotoCorp now has four models in the X range. Last year, it launched Xtreme 200R during the festive season.
The premium motorcycle segment of over 150 cc engine capacity is pegged at over 2.5 million units per annum.
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