According to company chief financial officer Niranjan Gupta, Hero MotoCorp expects exports to account for at least 10 percent of total revenue in the medium to long term, while also expected to grow faster than the domestic market in the next fiscal year. At present, the proportion of overseas shipments in the overall turnover pie is in the low single digits. The country’s largest two-wheeler maker, which ships its products to various parts of Asia, Latin America and Africa, also plans to expand its presence in the domestic premium market.
“In the medium to long term, in terms of global business (exports), we do want global business to be at least 10% of our total revenue. Some actions have been taken…” Gupta said in a note. Analyst call.
Due to currency inflation and other factors, many major markets encountered significant headwinds last year, with some such as Sri Lanka even closing down, he said.
“But obviously, those markets will come back, so we’ll scale up,” Gupta said.
He noted that the allocation of funds for increased capital expenditure and allocation for increased disposable income in Budget 2023-24 is expected to help the domestic two-wheeler industry achieve double-digit revenue growth in the next financial year.
He added: “We are regaining market share and supported by various actions, including multiple product launches in the coming quarters, we expect ourselves to lead the industry in FY24.”
Gupta noted that global headwinds are expected to persist, with some countries expected to fare better than others. Things are relatively better in India, with all major economic indicators moving in the right direction.
Elaborating on the company’s future strategy, he said the company’s goal is to regain its market share in the 125cc segment.
“Our opportunity is to build a premium portfolio, not just for the coming year but really for the next three to five years, so in the medium term we’ll build meaningful market share in a premium (segment) backed market share portfolio,” Gupta said.
In EVs, obviously geographic expansion and then portfolio expansion, he added.
“So, if I were to sum it up, these are roughly the strategies that we’re going forward in the medium term, how we’re going to grow in our revenue and our market share,” Gupta said.
As for the company’s readiness for the second phase of BS6 emission standards, he said its products will comply with the stricter regulations that will come into force from April 1 this year.
Regarding the expected price increases, he said: “The expectations are likely to be in the range of … ¥500 to ¥800 yuan per car. ”
First published date: Feb 15, 2023 at 17:07 PM CST
https://auto.hindustantimes.com/auto/two-wheelers/hero-motocorp-looks-to-ramp-up-export-as-it-aims-to-recover-market-share-41676460700025.html