The largest two-wheeler maker, Hero MotoCorp is currently developing an ultra-low cost bike for the Indian market. They claim that the low-cost motorcycle under works will be priced significantly lower than any other motorcycle available in the market, just like the Tata Nano, which is priced significantly lower than any other car. The bike is currently on the drawing board with their alliance partner, Erik Buell Racing. Currently, the Hero HF Dawn is the lowest priced bike from their stable retailing at Rs. 37,350/- (ex-showroom, Delhi).
We can expect Hero MotoCorp to come up with a sub Rs. 30,000/- bike for the low-cost project. Hero is definitely feeling the heat from its erstwhile partner, Honda which is on a spree of launching new products frequently and significantly gaining market share. The low-cost bike under works would help Hero MotoCorp to maintain their market share and increase their volumes significantly. Pawan Munjal, MD and CEO, Hero MotoCorp is striving hard to get the right technology for their Indian customers. Munjal travels constantly to look out for new opportunities and right partners.
Hero MotoCorp is aiming for 1 crore volumes by 2020, of which one tenth is to be exported. Hero MotoCorp has bought a 49.2 percent stake in Erik Buell Racing and the company believes that they have big scope for their motorcycles in the US market. EBR is helping Hero in terms of design and technology. Hero MotoCorp is also involved with Bain Capital, which is helping out the firm’s strategy towards growth. Hero is considering assembly plants too in the international markets on a smaller scale.
Source – Financial Express