The company targets portfolio expansion through market development by becoming a leader in the premium segment by the end of the decade. In this, Hero is emphasising building its EV leadership and diversifying the revenue streams via multiple operations, the company said in its investor presentation. However, it has also highlighted the company's focus on ESG growth by 2030. These are the 6 key pillars on which the company is betting to strengthen its position in the Indian auto market by 2030. These pillars are backed by 4S- speed, scale, simplification, and synergy.
Hero MotoCorp is also leveling up its business strategy through modifications on all fronts—portfolio, product, retail experience, digital and AI, R&D, and customers. In this, Hero aspires to become an untapped solution in the two-wheeler industry across both mass and premium market segments.
The premium 2Ws are an opportunity for more than INR 80,000 crore the company said in its presentation. Where it aims to be driven by or more than 200cc in which premium to be higher than 35% of total 2W in value share by FY30. While for premium volume share it targets 20%.
4S of Hero MotoCorp-
Hero MotoCorp is gearing up via 4S to expand its market share through speed, scale, simplification, and synergy.
Speed- The company is aiming to boost its speed in decision-making, time to market, and responses to make Hero MotoCorp a responsive organisation along with digitalisation and automation.
Scale- It is betting on scalable solutions and platform approaches to scale up the operations of the company.
Simplification- A focus on cutting down the unnecessary complexities and redundancies to empower horizontal structure of organisation.
Synergy- The company eyes collaborating internally to lead the competition externally. It also aims to create a collaborative ecosystem for partners, dealers, and center of excellence.
The company is also targeting sustainability with 100% carbon-neutral operations by 2030 along with product recyclability. It also aims at 100% green dealerships by the end of the decade as it is currently at 17%. Keeping gender diversity in mind the company targets 30% diversity by 2030.
Expansion strategy
International touchpoints: The company has its eyes on international fronts with its entry in Brazil and South East Asia. Hero is going to commence its operations in Brazil from Q4 FY 2024-25 while it has already commenced its operations in the Philippines from August 1 2024.
Elevating retail experience: Hero is upgrading itself to 2.0 using modifications in its current stores to enhance the retail experience. To enhance the experience the company is relying on a configurator, march wall, and large screens and aims to increase its dealership count to 800 by FY25. Hero currently has 300 dealerships. In the Premium segment of Hero, it targets almost 3x its dealerships count i.e targeting 150 dealerships by 2025 whereas it currently has 42 dealerships.
Collaborations: Tie-ups with multiple companies like Harley Davidson, Ather, and Zero Motorcycle will back the companies startegies and targets. In collaboration with an Amercial electric motorcycle manufacturer Zero Motorcycles, Hero will build and market former company's EV model in India. With Ather it will boost partnerships charging points and charging technology. First 440cc by Hero MotoCorp was launched in collaboration with Harley Davidson.
The company has grown 11% Y-o-Y in revenue with INR 37,456 crore along with EBITDA margin of 14% . The PAT was recorded at INR 3,968 crore that is 36% higher Y-o-Y.
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