New Delhi: Hero MotoCorp, a leading player in the two-wheeler industry, is setting its sights on a greater share of the premium market as it expands its footprint in this segment. The company, known for selling nearly 5.5 million two-wheelers annually, foresees a rapid surge in demand for premium bikes among Indian consumers in the coming years, as stated by a top executive.
In line with this strategy, Hero MotoCorp unveiled the Mavrick 440, a premium bike developed collaboratively by Hero Global Center for Innovation and Technology and Hero Tech Center Germany. Although the price remains undisclosed, the model will be available for pre-booking starting February.
In recent times, the company has bolstered its presence in the fast-growing premium bike segment by introducing two new models in India. Last year, it launched the Harley Davidson X440 in the upper premium category with a starting ex-showroom price of Rs 279,500. Additionally, the Karizma XMR was introduced to capitalize on the brand’s popularity in the Indian market, with a starting ex-showroom price of Rs 179,900.
Hero MotorCorp’s CEO, Niranjan Gupta, highlighted the rapid growth of the premium bike segment, witnessing a sixfold increase in industry sales over the past decade. The current market size stands at 800,000 units annually and is anticipated to surpass the 1 million mark soon. Expanding its footprint in the premium segment is expected to enhance Hero’s EBITDA (earnings before interest, tax, depreciation & amortisation) margin.
Gupta emphasized changing consumer trends, noting that over 75% of Indian consumers currently choose the uppermost variant from Hero’s two-wheeler lineup. In addition to the premium launch, the company introduced a new mass-market model, the Xtreme 125R, priced at Rs 95,000 (ex-showroom starting price in Delhi), marking Hero’s first offering of 2024.