According to the company's CFO, Niranjan Gupta, Hero MotoCorp anticipates that in the medium to long term, exports will make up at least 10% of total sales while aiming to outperform the sector in the local market. Currently, the percentage of international shipments in total turnover is in the low single digits. The largest two-wheeler manufacturer in the nation, which exports its goods to several locations in Asia, South America, and Africa, also intends to increase its position in the domestic luxury category.
"We do want the global business to account for at least 10% of our total revenue in the medium to long term, as far as exports are concerned. There are measures that have been put in place "On an analyst call, Gupta stated. Nonetheless, these markets will undoubtedly rebound, so we will scale back, Gupta said. He pointed out that the domestic two-wheeler industry is anticipated to produce a double-digit revenue rise in the upcoming fiscal year due to the increased fund allocation for capital expenditure and provision to increase disposable income in Budget 2023–24.
We expect to expand ahead of the industry in FY24; he continued, "supported by action on all fronts, including numerous product launches that are set up in the coming quarters." According to Gupta, there will likely be more global headwinds than tailwinds, with certain nations predicted to fare better than others. However, India is in a lot better position than the United States, and all important economic indices are improving. He explained the company's plans, stating that it hopes to regain its market dominance in the 125cc category.
According to Gupta, "Our opportunity lies in building a premium portfolio where multiple launches are lined up, not just for the upcoming year but actually for the next three to five years. You will see therefore in the medium term, we are building meaningful market share of the premium (segment) backed up by the portfolio." He continued, "On EVs, it is obviously a geographical expansion followed by portfolio growth." So, if I were to summarise, "those are broadly the strategy for us moving forward in the medium term on how we are going to increase our top line and market shares," Gupta said.
In answer to a query about the company's readiness for the second round of BS6 emission criteria, he stated that its goods would comply with the harsher rules that go into effect on April 1 of this year. He stated, "It is projected to be in the range of... Rs. 500 to Rs. 800 per vehicle," when asked about the anticipated price increase.
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