Updated February 12th, 2024 at 15:35 IST
Hero MotoCorp projects double-digit growth in two-wheeler industry in FY25
The domestic two-wheeler manufacturers anticipate the product volume to rise by 7-10 per cent during FY25
Growth projections: Hero MotoCorp expects the two-wheeler industry to grow by double digits in the next fiscal year backed by the premiumisation trend, particularly seen in the 125cc+ segments and higher average selling prices.
The domestic two-wheeler manufacturers anticipate the product volume to rise by 7-10 per cent during FY25, with higher performance margins expected from the 125cc+ segment, as per media reports.
Bajaj Auto's Executive Director, Rakesh Sharma, anticipates a 8-10 per cent growth in current fiscal year and expects 125cc and higher displacement motorcycles market share to surpass entry-level bikes share over next three years, citing media reports.
Meanwhile, the 125cc+ segment growth outpaces overall sales in the recent years due to the increased demand for higher displacement motorcycles among the younger demographic.
However, sales of the entry-level, commuter motorcycles, and popular choices for new riders and daily commuters, have witnessed a slow recovery after the pandemic. This is due to the weak demand in rural areas, higher prices and borrowing costs, as per media reports.
Notably, Hero Motocorp is keen on rural customers and expects growth in that market in the coming months.
Niranjan Gupta told the analysts that “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."
“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," he said.
Published February 12th, 2024 at 15:35 IST