Hero MotoCorp, a key player in the Indian market has revealed its plans to invest about Rs 2,500 crore over a period of two years towards upgradation of existing plants and digitisation, new product development and capacity enhancements. We believe that the fresh developments will help Hero strengthen its foothold in the automatic scooter segment in India. Currently, scooters account for only 11 per cent of overall sales, whereas its competitor Honda accumulates 67 per cent share from its scooters alone.
Reports indicate that the company expects to continue doing well as it has been recovering well post demonitisation. The decision to focus more on the automatic scooter segment has apparently come at the right time when sales for scooter have nearly matched up with the sales figures for 110cc motorcycle sales in India with just a difference of one per cent. Ashok Bhasin, head of sales and marketing, Hero Motocorp was quoted as said, "Hero scooters growth in FY18 would be higher than industry and it would lead to market share gain." The fresh plans are expected to further strengthen the leading bikemaker’s presence in the country. More details about the scooter lineup will be known in the days to come.
In terms of overall sales, Hero MotoCorp has always been a top player in the Indian two-wheeler industry. Although, Hero MotoCorp has witnessed a 3.5 per cent drop in sales for April 2017, it has by far and large been the top seller in the two-wheeler segment in India with 6, 12,739 units sold in April. Hero MotoCorp has hiked prices across its two wheeler range in the county by Rs 500 – Rs 2200 to offset the rising input costs. However, with the onset of the wedding season, the company claims that it will further see a boost in its overall sales.
