The Hero MotoCorp plans to introduce even more models in the scooter segment to challenge its erstwhile partner, Honda. Honda Motorcycle & Scooter India currently leads the scooter segment with a market share of 55%, while Hero MotoCorp has about only 11% market share. Speaking to Economic Times, Sanjay Bhan, Head of Sales at Hero MotoCorp, said:
We do see that scooters will have a reasonably decent role to play in society. Scooters are often a second purchase in the family. And as the largest motorcycle manufacturer, that puts us in the best position we can be in – to offer both these options to our customers. We recognise this 32-35% band will be there and we are therefore ready to maximise our gains in the category.
With an aim to boost the sales in the scooter segment, Hero MotoCorp has introduced a buyback scheme, BuySurance, in the country. The scheme was introduced in Pune in March to study the market response. Hero MotoCorp plans to launch the buyback programme in top-10 markets in India, and it has already rolled out the scheme in Delhi and Bengaluru. Buyers will get a guaranteed buyback certificate from CREDR that will have a fixed buyback value.
Hero MotoCorp currently offers six products in the scooter segment – Duet, Pleasure, Pleasure+, Maestro Edge (110 cc), Maestro Edge 125 and the Destini 125. While the 110 cc segment is dominated by the Honda Activa by a considerable margin, the 125 cc space has the potential for growth. The Suzuki Access 125 currently leads the 125 cc scooter space. Hero MotoCorp’s Destini 125 has delivered promising sales performance and became India’s second largest selling 125 cc scooter in March 2019. The following were the top five 125 cc scooter in the country in March:
|Model||Sales in March 2019|
|Suzuki Access 125||49,875|
|Hero Destini 125||22,564|
|Suzuki Burgman Street||8,250|
While the Destini 125 was pitched as a family scooter, the new Maestro Edge 125 is targeted at young buyers.