Hero MotoCorp’s CEO, Niranjan Gupta, is feeling hopeful about the future of the two-wheeler industry. He believes that it will grow by a large percentage in the next fiscal year. This growth will mainly come from the trend of people preferring higher-end bikes, especially those with engines larger than 125cc. People in the industry, including big motorcycle makers, think that there will be a 7-10 percent increase in the number of bikes sold during FY25. They think this increase will be mostly in the 125cc+ segment.
Rakesh Sharma, who is an executive director at Bajaj Auto, shares Gupta's optimism. He thinks that this year the industry will see growth of 8-10 percent. Sharma also thinks that in the next three years, bikes with engines of 125cc and higher will become more popular than entry-level bikes. This makes sense because lately, these bigger bikes have been selling more than the smaller ones. This is because more young people are interested in buying bikes with bigger engines.
However, sales of entry-level and commuter bikes, which are popular among new riders and people who use them for daily commuting, have been slow to recover after the pandemic. This is because there isn't much demand for them in rural areas, and the prices and costs of borrowing money are high. Despite these challenges, Hero MotoCorp is still hopeful about the rural market. They think it will start growing again in the next few months.
During discussions with analysts, Niranjan Gupta talked about Hero MotoCorp's positive view of the future. He thinks that in the next year, the industry will see double-digit revenue growth and he also pointed out that the premium segment of bikes has been growing steadily across all categories. Gupta is confident that the rural market will bounce back too. He thinks this will happen because more investments are being made more people are using digital technology, and the hospitality industry is improving. Hero MotoCorp thinks the industry has a promising future, particularly in rural areas.