Hero losing speed in rural 2W race

Hero MotoCorp, India's largest two-wheeler maker, has seen a decline in its market share in rural areas since 2018, losing ground to major competitors such as TVS Motor Company, Bajaj Auto, and Honda Motorcycle & Scooter India (HMSI), according to data from JATO Dynamics reviewed by Business Standard.

- DEEPAK PATEL

Hero's share of rural twowheeler sales in India has dropped from 40.4 percent in 2018 to 33.3 percent in 2023.

In contrast, Bajaj's share increased from 12.7 percent in 2018 to 13.9 percent, HMSI's from 21.8 percent to 22.2 percent, and TVS' from 15.5 percent to 17.8 percent. Suzuki Motorcycle India has also seen its share rise from 1.7 percent to 2.5 percent.

Industry sources attribute the rise in rural market share for Bajaj, Honda, and TVS to their robust marketing efforts, growing demand for more premium vehicles (in which these companies have strong offerings), and the expansion of dealership networks in rural areas.

According to Jato, any area with a population density of not more than 400 people per square kilometre is considered a rural area.

Hero has been the leading player in rural areas, primarily due to its extensive range of products in the commuter motorcycle segment (below 125cc).

Despite intensifying competition, the rural twowheeler market has yet to fully rebound to its 2018 levels.

JATO Dynamics reports that 3.54 million units and 3.157 million units of two-wheelers were sold in rural India in 2018 and 2023, respectively.