New Delhi Hero MotoCorp has decided to shift its focus on premium market expansion now. The country’s largest two-wheeler maker, on Monday rolled out the new Achiever 150 priced at Rs.61,800 onwards as it aims to expand presence in the premium segment.
Pawan Munjal, chairman of the country's biggest two-wheeler company, said that there is a need for Hero to play a more active role in the upper segment of the bike market which is currently dominated by products from companies such as Bajaj AutoBSE, Yamaha and Royal Enfield. "Hero needs to do a lot more in the premium segment," Munjal said as he launched a new 150cc motorcycle.
The company currently dominates the entry end of the bike market with products such as the Splendor and Passion, but has not been able to make much of a headway in the premium products, which fetch higher profit margins. Its share in the premium segment is in low single-digit percentage point, though the company is now targeting to take this up to double digits.
Apart from the Achiever, Hero's products in the premium category include Xtreme, Hunk (both 150cc), Karizma and ZMR (both 225 cc). However, the products have not been able to crack success with buyers, prompting the company to look at new products as well as upgrades.
While the drum-brake variant of the bike is priced at Rs.61,800, the one with disc brakes will cost Rs 62,800 (ex-showroom Delhi). Hero MotoCorp, which dominates the 100 cc and 125 cc segments with about 65 per cent and 55 per cent market share respectively, plans to introduce more models in the premium segment. The motorcycle comes with new BS-IV compliant engine with Hero’s patented i3S technology, the company said.
Asked about festive season sales, Hero MotoCorp Head, Sales Marketing and Customer Care, Ashok Bhasin said the company has posted over 35 per cent growth during Onam festival, compared with the year-earlier period, and is expecting a good run during the rest of the year. Hero MotoCorp also introduced a limited edition version of Achiever 150 to commemorate the company’s cumulative production of 70 million units.