The two launches by Hero MotoCorp Ltd – Xtreme 125R and Mavrick 440 – will strengthen the two-wheeler major’s portfolio amid the current trend of premiumization in the market. The Xtreme 125R, available at a starting price of ₹95,000, fills a crucial gap in Hero’s line-up. Key competitors for this model include Bajaj Pulsar and TVS Raider.
To be sure, Hero’s wholesale market share in the two-wheeler segment dropped to 30% in the nine-month ended December, compared to an average of 36% from FY18-22, notes Jefferies India. This comes on the back of lacklustre demand in the entry level segment, where Hero primarily operates. As such, the launch the Xtreme 125R could play a significant role in helping Hero recapture some of its lost market share.
Mavrick’s pricing is yet to be announced and this launch marks Hero’s entry into the above 400cc segment under its own label. Given the intense competition here from the likes of Royal Enfield, Harley-Davidson X440 and Triumph Speed 400, the pricing of Mavrick is a key monitorable.
On the electric vehicle front, Hero plans to launch four vehicles in FY25. “Any potential success in premium bikes and electric vehicles can enhance Hero’s growth outlook, providing further upside to earnings,” said Jefferies.
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