Expect two-wheeler industry to see double-digit revenue growth next fiscal, says Hero MotoCorp CEO
two-wheeler industry is expected to witness a double-digit revenue growth next fiscal with demand for premium models anticipated to gain further momentum, according to Hero MotoCorp CEO Niranjan Gupta. The country's largest two-wheeler maker, which reported a total income of Rs 10,031 crore in the October-December quarter this fiscal, also expects the entry level segment to do better going ahead.
«As far as the demand is concerned, as we have been saying, we do expect the industry to grow double digit on revenue in the coming year at the least,» Gupta said in an analyst call.
He noted that in the domestic two-wheeler space there is a shift taking place towards premiumisation with buyers looking for feature-rich trims.
Gupta stated that the entry level bike vertical, which has seen muted sales over the last few years, is also on a recovery path.
«So, it's not just about the top end of India which is growing, you can see aspirations of people growing,» Gupta stated.
He noted that demand in the rural areas has improved considerably.
«At the bottom of pyramid, the heavy capex spend that's been happening, the digital inclusion that's been happening, the hospitality industry that you can see clearly which is lifted up, it's actually lifting the sentiment of the consumers of the bottom end,» Gupta said.
He further said: «We clearly see the positive signals which are emanating from the rural sector as well and we will see in the coming quarters growth picking up from that segment.»
Elaborating on the company's plans
