'Changing Gears' strategy activated by Hero MotoCorp

India's number two 2-wheeler maker has realised that it has to work very hard to regain lost ground. The first salvo in the 125-200 cc range is the Xtreme 160R

- Amit Vijay M and Manobhava Baruah

Hero MotoCorp (HMC), India's largest two-wheeler manufacturer, is intensely looking to change gears to win in the core segment and ride the premium wave as it tries to maintain its prominence and keep its dominant market share intact in the world’s largest two wheeler market.

While its competitors have grown on average by 59 percent during FY18-FY23, HMC has managed to grow a mere five percent during the same period, according to industry analysts. The company is currently gearing up to push its premium strategy with the Hero badged Harley X440, which launched during the first week of July. The Harley launch will be HMC's first shot at the 250 cc above category, marking its debut in the sub 500 cc portfolio. Royal Enfield's dominance in this space has tempted more and more manufacturers to tap into this segment.

Last month the company also launched the 160R Xtreme motorcycle. Autocar Professional was in Jaipur (CIT) for the Xtreme R 160 launch, and had the opportunity to speak to Ranjivjit Singh, Chief Growth Officer of the company. “The Xtreme 160 R is the first launch that you are seeing this year. What you would probably see is a lot more launches coming out every quarter,” Singh said.

He also highlighted the company's plan to secure a position in the premium two-wheeler segment. The current market trend clearly signals that the competition is inching forward in all sub-segments except HMC’s core 100 cc category, where the company is a prime player. Competition from Bajaj, TVS, Royal Enfield, and Suzuki has grabbed Hero’s slippage in market shares in the 125- 200 cc categories.