Priced within 45,000, they more than met drivers' expectations on mileage. With the roads, especially those in rural areas, not always in great shape, it was important the bikes didn't guzzle fuel.
How important was something Hero Motorcorp understood well. And with formidable brands like the Splendour, Passion and the HF 100, it had soon cornered more than 70% of the market. The competition was envious of Hero's perceived "brand promise". As one rival promoter pointed out at the time, "there isn't much of a difference between our 100cc bikes and Hero's. "Both have a fuel efficiency of 70 kms per litre and both are priced alike. Yet, Hero outsells us 9:1".
He didn't need to fret for long because post 2019, budget bikes were no longer affordable. The change in emission norms, jump in insurance costs, spike in commodity prices and general inflationary pressures pushed them well beyond the reach of the common man. With the market turning premium, Hero has continued to lose share. Last September, the share plummeted to what was probably an all-time low of 27%.
It wasn't as though Hero didn't notice the change in the market. In fact, the company had been among the first to enter the premium space. But, it didn't get very far. Now with CEO Niranjan Gupta at the helm, Hero has been working overtime to premiumise its product range. The portfolio now comprises the Harley Davidson X 440, the Xtreme 160R, Xpulse 200 4V, the Karizma XMR and the Mavrick 440, launched in January.
This story is from the March 18, 2024 edition of Financial Express Mumbai.
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This story is from the March 18, 2024 edition of Financial Express Mumbai.
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