Hero MotoCorp share price zooms to 52-week high; Harley X440 launch seen boosting market share

livemint.com:

₹3,159.95 apiece on the BSE Wednesday. It rallied 4.52% in the previous session. The X440, which marks Hero MotoCorp and Harley-Davidson’s foray into the 440cc segment for the first time in India, is expected to drive market share gains of the Indian auto major within the segment.

The 440cc cruiser bike would majorly compete with the 300cc+ market leader, Royal Enfield, in India. It is priced starting at ₹2.2 lakh, which puts it at just a 19% premium to Royal Enfield’s Classic 350. Read here: Hero rolls out 440cc Harley at ₹2.29 lakh The Harley-Davidson X440 is the first premium motorcycle to be introduced under the licensing agreement between the two brands.

The joint development also gives Hero MotoCorp access to technology, which would help them create more suitable motorcycles for the export market, analysts said. Global brokerage Jefferies believes that Indian two-wheelers are ripe for a strong recovery from an abnormal cyclical trough and expects industry volumes to rise at an 18% CAGR in FY23-25. It expects Hero MotoCorp’s volumes and EPS to grow at a 14% and 26% CAGR, respectively, over this period.  Analysts at Antique Stock Broking believe X440 is a refined product with a superior build quality, handling, and contemporary features coupled with an aspirational appeal that should help Hero MotoCorp gain a share from the competition if it holds good on delivery, distribution, and service.