The stiff competition from its erstwhile partner - Honda has impelled Hero to rethink its strategy. The company is going to launch a dozen new models and variants over the period of next nine months. The primary focus of the company would be in the 125cc scooter segment. This move comes as a part of the plan to counter Honda's grip in the segment. Reports also suggest that the company aims to upgrade its product portfolio. Hero MotoCorp is bullish about the rise in demands for two-wheelers on the back of factors like the Seventh Pay Commission and predictions for a healthy monsoon.
Hero MotoCorp's Chairman Pawan Munjal feels the outlook for two-wheeler makers in India is positive due to a number of factors. At the launch of the Splendor iSmart 110, he said the sales for motorcycles and scooters would go up but the effect would be seen in the second half of 2016.
It is not just reduction in demand but tough competition from Honda that Hero MotoCorp has had to fight off. Honda's Activa scooter has been selling like hot cakes, so much that it has become the largest-selling two-wheeler of India for six straight months, edging past Hero's Splendor.