Hero MotoCorp’s CEO Niranjan Gupta projects the two-wheeler industry to grow by double digits in the next fiscal year. This growth will be driven by the premiumisation trend, particularly seen in the 125cc+ segments. Our sister publication Autocar Professional learns that major two-wheeler manufacturers anticipate the product volume to rise by 7-10 percent during FY25, with the 125cc+ segment expected to perform higher.
Bajaj Auto executive director Rakesh Sharma predicts 8-10 percent growth in the current fiscal year and expects the market share of 125cc and higher displacement motorcycles to surpass entry-level bikes over next three years. Meanwhile, the growth of the 125cc+ segment outpaces overall sales in the recent years due to the increased demand for higher displacement motorcycles among the youth.
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However, sales of entry-level and commuter motorcycles, popular choices for new riders and daily commuters, have seen a slow recovery after the pandemic. This is due to the weak demand in rural areas, and higher prices and borrowing costs. What’s to note is that Hero Motocorp projects more interest from rural customers and expects growth in that market in the coming months.
Hero MotoCorp chief executive officer Niranjan Gupta told the analysts: “We expect the industry to grow in double digits on revenue in the coming year. The premium segment has been outstripping the growth. There is premiumisation in every segment”. He also added that, “At the bottom of the pyramid, heavy capex trends, digital inclusion and the hospitality industry are lifting sentiments. We see positive signals from the rural sector as well, and we see the growth picking up in that segment in the coming quarters.”
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