Hero To Launch New 125cc Scooter Around Diwali, Aims To Grab 20 Percent Market Share
The 2-wheeler manufacturer wants to regain its lost position in the market and surpass it.
Hero is set to launch a 125cc scooter around Diwali this year with an aim to grab 20 percent of the scooter market share in our country.
In FY20, the firm sold 4.02 lakh scooters, which was 44 percent less than the previous year and due to this, it fell to fourth place, behind Honda, TVS and Suzuki.
The economic slowdown was to blame for the sales drop last year and with a whole quarter almost wiped out due to COVID-19 this year, the brand is betting on new launches to increase its market share.
Pawan Munjal, Chairman and Managing Director of Hero MotoCorp, said to shareholders at the recent annual general meeting that the company would focus on a few models from now on.
“We are focusing on a few models so that the entire investment, entire focus, entire effort goes behind those few models, few segments, to get to a higher market share which we used to have,” announced Munjal.
“We had, at one point in time, a 19 percent market share in the scooter segment, where I am sure we will get back and we will also go beyond that,” he stated, adding that more launches will take place closer to the Diwali season.
Since the 125cc scooter segment is currently growing faster, Hero’s newest offering is also expected to be launched in that space. This move, the automaker reckons, will help it reach its 20 percent market share target.
Currently, Honda and TVS dominate the scooter segment with 75 percent share in the market. Hero’s only drawback is that its core markets are motorcycle-dominated states like Bihar, Rajasthan, Uttar Pradesh and West Bengal, where scooter penetration is low.
Meticulous planning and clear-cut approach would be needed from Hero’s side to either “scooterise” its core markets or penetrate major scooter markets in the country much more than it does now to achieve its goal.