Hero MotoCorp to launch two new scooter models next year
Seeking to cash in on the fast growing scooter segment in the domestic market, the country's largest two-wheeler maker Hero MotoCorp plans to launch two new models in next one year.
New Delhi: Seeking to cash in on the fast growing scooter segment in the domestic market, the country'slargest two-wheeler maker Hero MotoCorp plans to launch two new models in next one year.
The company is also considering to scale up its monthlyscooter production to 1 lakh units by January 2015 and 1.5lakh units in the mid-term.
"In the next one year there will be two new scootermodels in the market," Hero MotoCorp Senior Vice President &CFO Ravi Sud told analysts in a conference call.
While he did not elaborate on the segmentation of the newscooters, Sud said it would add to the company's existingmodels -- Pleasure and Maestro -- to accelerate growth in thescooter segment.
Scooter sales in India grew by 32.11 per cent in theApril-September period at 21,90,351 units this fiscal asagainst 16,57,920 units in the year-ago period.In the first half of the ongoing fiscal, Hero MotoCorphad posted a growth of 5.52 per cent in scooter sales at3,52,330 units as against 3,33,889 units in the same periodlast fiscal.
Sud said the company's domestic scooter sales didn'treflect the actual growth as Hero MotoCorp had committedcapacity to execute a one-time export order of 45,000 units byNovember beginning.
Seeing further growth in the scooter segment, the companywould be enhancing its scooter production capacity.
"Currently we have a capacity to produce 80,000 units permonth, which we are scaling up to one lakh units by January2015. The consideration is to take it to 1.35-1.5 lakh unitsin the mid-term," Sud said.
He said the one lakh scooters capacity would come fromthe existing plants of the company.
"When we increase it to 1.5 lakh units a month, it couldalso include the scooter capacity from the upcoming plant inGujarat," Sud said.
Currently, Hero MotoCorp produces its scooters fromGurgaon and Dharuhera plants.
He said the scooter penetration in India is expected to increase to around 32-33 per cent from the current 27 per cent. The scooter sales growth has been urban-led where the penetration is 40 per cent, that can go up to 45 per cent.
The company has a total two-wheeler production capacityof 7.65 million units annually from its plants at Gurgaon, andDharuhera in Haryana, Haridwar in Uttarakhand and Neemrana inRajasthan. By next year, it would add another 1.8 millionunits annually when its fifth plant at Halol in Gujaratbecomes operational.
The company is planning to set up its sixth plant inAndhra Pradesh.