Hero MotoCorp has been awarded the NDTV Car and Bike Two Wheeler Manufacturer of the Year award for 2017. A strong focus on R&D, convincing new products, future product development and stellar market performance has earned Hero the coveted award.
Formerly known as Hero Honda, with Hero's collaboration with Honda, Hero MotoCorp is the world's largest two wheeler manufacturer by volume, with capacity to produce 8.1 million units a year. In India, Hero currently has a market share of over 52 per cent in the motorcycle space, led by its best-selling commuter motorcycles. But that has not been without pitfalls. After splitting with Honda in 2011, Hero's two wheeler market share fell to 39 per cent, the lowest in over two decades. But market perception as the manufacturer of economical, fuel efficient two wheelers with simple looks seems to have been the winning card for Hero. And two new scooters which were launched last year also aided Hero's comeback.
(Hero Achiever 150 Launch)
The numbers for this fiscal, more specifically, the second quarter, indicate that Hero MotoCorp is on a roll. In the second quarter of FY 2017, Hero MotoCorp recorded the best ever sales as well as financial performance, selling 18,23,498 units in a quarter. The company registered a gross turnover of Rs 8448.74 crore and highest ever net profit after tax (PAT) of Rs 1004.22 crore during the same period. EBITDA (earnings before interest, taxes, depreciation and amortisation) margins of the company at 16.2 per cent are also the highest ever reported.
Hero has also upgraded several motorcycles with the start-stop system, which helps improve fuel efficiency in traffic, including the new 150cc Hero Achiever, Hero Passion Pro as well as the Splendor models. In November 2016, Hero showcased the CD Dawn 125 motorcycle at the EICMA Motorcycle Show in Milan, underlining Hero's market-specific product strategy. The CD Dawn 125 won't be sold in India and has been developed specifically for the Africa region. This fiscal, the company intends to launch 15 new products across categories.