Hero MotoCorp eyes 30% sales via digital channels by 2030

The country's largest two-wheeler maker, Hero MotoCorp, has set a target to achieve 30 per cent of its sales on digital platforms by 2030.

The company, which sold 54 lakh units of motorcycles and scooters in the last fiscal year, is also looking to have 30 per cent women workforce in the organisation by 2030.

"We have set an ambitious goal of achieving 30 per cent sales through digital channels by the year 2030," Hero MotoCorp Executive Chairman Pawan Munjal said in the company's annual report for 2022-23.

The company, which produced 5.3 million units in 2022-23, has augmented user interface of digital channels, which have emerged as a preferred destination for customers' pre- and post-purchase needs, he told shareholders.

Munjal said the company has invested significantly in upgrading its information technology systems, adopting advanced analytics and Artificial Intelligence (AI) tools, and in implementing automation technologies.

"Our flagship project 'Digital Factory Lighthouse' installed in the manufacturing facility at Tirupati in Andhra Pradesh targets boosting productivity by 20 per cent by the end of the current fiscal," he noted.

Munjal stated that the demand for motorcycles and scooters in India is led by rural and semi-urban markets that experienced challenging circumstances during the year.

However, the structural growth drivers continue to remain intact, he added.

"Given the country's young skilled population, the strong economic growth potential of rural and semi-urban areas, easier access to consumer credit and a swelling demand for last-mile connectivity, we remain confident that Hero MotoCorp will lead the way to a successful 2023-24," Munjal stated.

The two-wheeler major stated that despite challenging global market conditions, it continued to invest in brand building, new product launches, and in expanding network reach.

"As the world's largest two-wheeler manufacturer, we have long-term plans for establishing our presence in new markets and growing our share in existing ones, and remain committed to our market development efforts," he said.

Munjal noted that the company intends to make its internal combustion engine (ICE) and electric vehicle (EV) products even more value-focused going ahead.

"We expect a healthy growth and are targeting production of over 6.5 million two-wheelers in 2023-24 for domestic and export purposes," he noted.