[TusharK]

Hero MotorCorp is planning to set up separate retail outlets to sell its bikes with engine displacements of 150cc and above.



Pawan Munjal, Chairman, MD and CEO of Hero MotorCorp told the media that a new retail strategy is under consideration, which will be able to service premium customers. He also disclosed that the company has lined up more bikes and scooters with engine capacities more than 150cc.

At present, Hero MotorCorp has over 6,000 dealerships across India. All of its products are sold under the same roof. Entry-level bikes like the Splendor, HF Deluxe and Glamour will continue to be sold at existing Hero dealerships, while retail operations of larger bikes like the Karizma ZMR, Achiever 150 and Xtreme Sports are likely to be moved to the new outlets.

Source: Economic Times

[PrasunBannerjee]

A Nexa for two wheelers coming up next. Looks like Hero is here to follow suit in automotive industry and lead the two wheeler market in new trend. Would be interesting to observe in the coming times.

[Red Liner]

Already been done by Bajaj for probiking and now KTM. Just that hero is waking up a little late for the party.

[PrasannaDhana]

Is this some kind of a joke? Hero should first launch some of the concepts they showcased at the 2014 autoexpo.

What will you showcase in the exclusive showrooms? Ugly zmr , zma and achiever 150 hahaha

[IndieGooner]

Have they not stoped making ZMR already? Even other models above 150cc are no great shakes in market. As Hero's smaller bikes seems to sell by themselves, I guess not having to keep stock of larger bikes might make some of their dealers happy.

[GTO]

Originally Posted by PrasunBannerjee

A Nexa for two wheelers coming up next.

100% agreed. Hero is looking at doing a Nexa here.

As Maruti has proven, having another retail brand is an effective way of increasing dealerships & thus, sales. Lets call the existing Hero dealers 'Hero 1' and the new chain 'Hero 2'.

- You can expand your retail network by opening a 'Hero 2' outlet right next to 'Hero 1'. That wouldn't be possible with just the 'Hero 1' brand.

- 2 salesmen selling 5 products each will do a better job than 1 salesman selling 10 products. 2 showrooms selling 10 products each will always do better than 1 showroom selling 20 products.

- 'Hero 2' outlets will be first offered to existing 'Hero 1' dealers, so they don't end up unhappy with the situation.

- In exchange for the investment, 'Hero 2' gives them higher-priced 2-wheelers (thus, fatter profit margins).

Originally Posted by Red Liner

Already been done by Bajaj for probiking and now KTM.

I wouldn't say they are directly comparable as KTM is a motorcycle brand in itself.

[ethanhunt123]

All works well in theory - but where are the products for the "premium dealerships" to sell ? Hero has not shown any competence in making non-commuter bikes after Honda divorce. Karizma ZMA/ZMR was a joke of a refresh & less said about CBZ extreme the better.

[Vignesh_N/A]

A whole showroom for ZMR alone? Damn, that is going to be expensive.

PS: I dont think xtreme and achiever will qualify for "bikes over 150cc"

[CrAzY dRiVeR]

Originally Posted by PrasannaDhana

Is this some kind of a joke? Hero should first launch some of the concepts they showcased at the 2014 autoexpo.

Absolutely!

Products first please. As of now - Hero has not even a single desirable product in their stable.

Here's a reality check from September 2017.

Almost everything they launched above the bread and butter 100cc segments recently has flopped. For a company selling close to 2.25L motorcycles a month, all they had was 8k units above 150cc. A separate network is not the answer for that, better products are!

Originally Posted by GTO

I wouldn't say they are directly comparable as KTM is a motorcycle brand in itself.

Before KTM - there was Bajaj Probiking. These dealerships were to cater to the bigger Bajaj bikes like the Pulsar 220 and the likes.

Kawasaki and later KTM branding were added to these probiking outlets much later. So yes, it initialy started off as a similar concept. But then - Bajaj had the products to back it up - Pulsar 220, 200, Avenger 220 were all arguably ahead of the competition back then, and they continue to sell even now.

Originally Posted by GTO

100% agreed. Hero is looking at doing a Nexa here.

As Maruti has proven, having another retail brand is an effective way of increasing dealerships & thus, sales.

Maruti didn't prove it in a day. We at Team Bhp did not believe this concept when the SCross came out. It was products like the Baleno that made real use of the NEXA network.

Which is squarely what Hero lacks for now. Hope, they have some big plans in mind for the Auto Expo 2018. Their recent show at EICMA was nothing short of a disappointment.

[PNTLovesNano]

I don't know about Hero's primary concern. When I was dabbling between Bajaj Ct100B, Tvs Sport, and Hero Splendor, the only 150cc bike they had was Achiever. Essentially, Xtreme, Hunk, and Karizma are only on website and not one piece is available for sale across the country. First, they should have the bikes to start with.

[rajshenoy]

And what are those bikes? Hero has been only conceptualizing bikes above 150cc and none have come out on the road yet. I am safely ignoring what is left of Karizma, I dont think there are many takers for that anyway.

[Fulcrum]

Hero MotoCorp seems to be going the Maruti Suzuki way as the company is working to come out with a separate retail channel to sell its premium products (150 cc and above) like Maruti did with it's NEXA dealerships.

The company has confirmed that it will launch a handful of new models during the current fiscal year. The new product lineup will also include some premium bikes and scooters. Hero's recently unveiled 'XPulse' off-roader concept is also among the upcoming premium products of the company. It's a dual-purpose adventure bike offering a mix of on-road comfort and off-road capabilities. Besides this, Hero will bring in the Xtreme 200S sports bike. Based on the diamond type chassis, the Xtreme 200S features mono halogen headlamp with twin LED pilot lights, LED tail lamp, contrast coloured mud guard at the front tyre and 17-inch wheels.

[mazda4life]

Slightly off topic, I have been watching the Hero golf tournament currently being held in Bahamas. Looks like Hero is launching motorcycles in USA market by 2019.