WEB DESK
Hero MotoCorp Ltd, the largest two-wheeler maker in India, is betting big on 125cc scooters and premium motorcycles to try and cut its reliance on entry-level motorcycles amid tepid sales in domestic markets, REPORTS LIVE MINT.
Though overall scooter sales were flat in FY19, those in the 125cc segment grew by 50%. This segment now makes up 25% of the wider scooter market, which is expected to grow to 50% in the years to come, according to a senior executive at Hero MotoCorp.
Sales of two-wheelers especially in urban centres have remained damp as a reflection of overall market sentiments and an absence of jobs, coupled with an increase in vehicle insurance premiums.
On 20 September, the government raised compulsory personal accident cover for two wheelers to ₹15 lakh from ₹1 lakh. At the same time, the Supreme Court directed an increase in third-party premium for vehicles to five years, to be collected upfront from buyers. Hero has been trying to get a foothold in the overall scooter market for quite some time now. In FY19, the company also re-entered the premium motorcycle segment.