Hero is planning to introduce separate retail chain for bikes of 150 cc and above capacity to adhere to the premium requirements
Hero MotoCorp has been mulling over establishing exclusive sales outlets for motorcycles of 150 cc and above capacity. Confirmed by our source, who elected to remain anonymous, it coincides with Pawan Munjal, Chairman, Managing Director and CEO of the company, stating to the media that a new range of strategy is currently being evaluated by the board.
The Gurgaon-headquartered company has a vast footprint across the country with over 6,000 dealerships but all the existing products in the portfolio are being retailed under a single chain. With its sales largely based on the entry-level customers in the volume segment, best-selling bikes like Splendor, HF Deluxe and Glamour have always been up on top.
And they will continue to be sold in the same type of showrooms as Hero does not want to mess around with its high strengths. However, the motorcycles of 150 cc and above categories such as the Achiever 150, Xtreme Sports and Karizma ZMR will likely be shifted to the new-look showrooms that are predicted to have a more premium ambiance.
The company has been criticised for lack of premium offering in the marketplace despite having the biggest chunk of share and the new strategy could turn things around in its favour. Moreover, it signals an array of possible new product introductions like the Xtreme 200S. Hero showcased a raft of concepts in the last editions of the Delhi Auto Expo but nothing materialized into production versions.
The scenario could change soon as increased focus will be put on scooters and premium bikes, and six products are lined up to be launched in the current fiscal. Hero debuted the XPulse off-road concept at the ongoing EICMA show in Milan and it could enter production soon judging by its outlook and may open up a new affordable adventure bike segment.
An XF3R concept based 300 cc naked streetfighter and a HX250 based faired sportsbike could be in the pipeline in the near future. As bike manufacturers are making huge strides to grab hold of the developing premium segments, Hero should make its moves and not be late to the gig.