Chennai: “The price point and the products that the customers want in south is completely opposite to that in the north. We cannot run south from north,” said Hero Motors Company, chairman, Pankaj M Munjal while speaking about the bicycle market here at the launch of the company’s bicycle showroom in Velacheri.
In total, Hero launched six showrooms (branded as Hero Sprint Stores) in Chennai joining hands with local cycle retail major Just Buy Cycle (JBC) in a bid to expand its presence in the South.
Pankaj Munjal said, yesterday, “South Indian (market) is totally different from the mix of east India and north India. So, Hero is going to be more local and do whatever it is going to take to expand business here. We have to concentrate more in South.”
“In the South, particularly in Chennai and Bengaluru, people are willing to spend more for health and recreation than in the other parts of India. This market has the average selling price that is the highest in India,” he said.
Mujal also highlighted that Chennai and Bengaluru are leading the e-bike revolution in India. He said, “Generally people use the second car for short-stints in the city like shopping. So the e-bike can do this job and replace the second car. Our e-bike- Lectro is one such product. We expect the change to e-bikes to start from Chennai and Bangalore,” he added.
“Our rural market was affected during demonetisation and our market share fell to 27 per cent. But we have recovered and it has increased to 35 per cent now. We are aiming for 40 per cent in the next few quarters,” said Munjal.
Munjal again talked about the importance of South and said the region will be a key focus region to boost market share as the company manages to maintain about 40 per cent share in North. “Our South business has to pick up,” he said.