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A revival in the entry-level bike segment has helped Hero MotoCorp, the country’s top two-wheeler maker, grow its share of the motorcycle market marginally amid intense competition.
Sales of 75-110cc bikes, a major volume segment in motorcycles, had dropped after demonetisation.
The current fiscal has seen a decent run for the motorcycle segment, reporting a growth of 6 per cent at 7.61 million units in the first half.
The growth was led by the 75-110cc segment, supported by an improvement in rural demand.
The entry segment accounts for 59 per cent of the overall motorcycle market in India.
Hero’s sales in the segment grew 10 per cent at 3,299,849 units in April-October, while the overall segment grew 7 per cent at 4,489,912 units.
The company improved its market share marginally by 100 basis points to 51 per cent from 50 per cent in the year-ago period, driven by its popular models such as Splendor and Deluxe.
Rural markets improve“Urban markets began to improve in the first quarter. In the second quarter, the rural markets improved. Going forward, we expect the momentum to continue,” Ashok Bhasin, Hero MotoCorp’s Head - Sales, Marketing and Customer Care, told a recent earnings conference call.
“Hero MotoCorp benefitted from the channel-filling measures undertaken post the transition to BS-IV and GST in April and July 2017 respectively, and also the uptick in rural demand sentiment during the current fiscal,” said Subrata Ray, Group Vice-President, Corporate Ratings, Icra.
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