Hero Motorcorp is advertising its sales of 500000+ units but not advertising the growth rate. Its yoy growth is about 5% while Honda posted a growth of 11% and tvs posted a growth of 21%. Honda CB shine grew 74% yoy eating into Hero’s Splendor and HF deluxe pie. these motorcycles are Heromotorp’s bread and butter models.
Hero Motocorp’s major push seems to be on Scooters and exports now. This has been mentioned by Mr. Munjal in some recent interviews. But I don’t see scooter sales to be enough to offset the lack of growth in motorcycles.
Another major problem lies with their premium motorcycle lineup. Hero has lost the plot post CBZ and their premium motorcycles are not exactly desired by the urban youth. The Karizma in all its iterations has been a failure. The xpulse200 is interesting and the 200R looks beautiful but their tech is not competitive.
Ather bet seems to be the silver lining for Hero in the immediate future.