Hero MotoCorp Accelerates to Expand Scooter and 125cc Bike Lineup

Hero MotoCorp plans to expand its scooter offerings and strengthen its position in the 125cc bike segment, aiming for faster growth than competitors. CEO Niranjan Gupta highlighted upcoming launches and increased production capacities. Strong market recovery and optimistic growth prospects in the domestic two-wheeler industry were also noted.

Hero MotoCorp is set to expand its scooter range and consolidate its position in the 125cc bike segment to outpace its competition, according to CEO Niranjan Gupta.

The company aims to introduce both petrol and electric scooter variants while boosting the production capacity of its 125cc bike, Xtreme 125R, to meet increased demand.

'Action will be significant on both ICE and EV fronts. We will unveil the Destini full-body change soon, followed by Xoom models within this fiscal year,' Gupta revealed during an analyst call.

In the EV segment, the company plans to expand its portfolio into mid- and affordable segments within this financial year.

Gupta mentioned a sharp recovery in the 125cc bike segment in the June quarter.

'We maintained strong market shares in the 100cc and 110cc segments through brands like Splendor and Passion,' he added.

Market share in the 125cc segment increased from 13% in Q4 FY24 to 20% in Q1 FY25.

He emphasized that their models like Glamour, Super Splendor, and Xtreme 125R contributed to this growth.

Production capacity of the Xtreme 125R is being increased to meet high demand, with plans to ramp up to 40,000 units per month.

While facing strong competition, Hero MotoCorp is confident in its growth potential.

CFO Vivek Anand outlined plans for volume growth, cost-saving initiatives, and a robust outlook for the domestic two-wheeler industry.

(With inputs from agencies.)