Hero has had a good career in the commuter segment, thanks to motorcycles like Splendor, which is a huge success in rural and urban markets alike. However, with increasing competition in the sub-500 segment, the home-grown two-wheel manufacturer is now ready to introduce premium motorcycles in India. The brand has announced that a retail channel will be established to sell premium products (150 cc and above). Currently, Hero has more than 6,000 dealers throughout the country that sell commuter motorcycles such as Splendor, HF Deluxe and Glamor. One of the first products of Hero’s premium product line to be launched in India would be the Hero Xpulse 2018, which was presented at EICMA 2017, Milan, on November 8. Hero insists that Xpulse is still in the conceptual stage, but if it gets enough response, it will be manufactured and sold in India. The Xpulse has been inspired by the same technology and R & D behind the Hero’s Dakar Rally motorcycles.
“As we move forward, we will have more products in the premium segment with higher engine capacity, clearly one customer per 100 cc is very different from a customer for a premium bike,” said Hero MotoCorp CEO and CEO Pawan Munjal , to PTI in the framework of EICMA 2017. He also said: “So, we are considering a retail strategy with which to be able to serve that type of customer (premium).”
Munjal also confirmed that the company plans to launch around six products during the current fiscal and premium motorcycles will be a part of it. Eventually, there will be more launches in the premium segment and scooter, he said.
The company will launch more models of more than 150 cc, including bicycles and scooters, to strengthen its range of premium products, he added. When asked about the vision of the company two or three years later, the head of Hero MotoCorp explained that there will be “growth in the premium segment, where we have a small market share, the difference will be there, but we can not ignore our segment of bread and butter. ”
We also saw that approach to move to a premium playground of Maruti Suzuki, with the introduction of the retail chain Nexa, which only sells premium brand products such as Ciaz.