The tie ups the Hero MotoCorp made in the recent past will surely make all to think that the company is going to concentrate on the premium bike segment. But the company has come up with some other plans.
The world's largest two wheeler manufacturer is equally interested in coming up with lower displacement bikes to tap the huge potential in the low cost bikes segment. This move surely aims the lower middle class people of India.
The company is aiming the buyers who are getting them upgraded by moving to the bikes from mopeds which they would have been using for a long time. As of now, the cheapest bike in the domestic market is the Hero CD Dawn which is priced at INR 35,000.
But, the segment which HMC is focussing on presently are bikes that'll be priced merely at INR 20,000 t0 30,000. This is seriously very cheap compared with the present pricing strategy that all the companies follow.
Mr. Munjal, MD of the company said, "It's easy to make something like a moped, but does that serve your purpose. A moped is not as successful in this country since it is not rugged and sturdy as per the usage our consumers-the kind of loading patterns and driving habits. We have to have a real motorcycle"
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