Hero Cycles, which already commands a lion's share of the mass market cycles in India, has just wheeled in a premium range – Urban Trail.
It is looking to rope in European design firms such as Porsche Design to offer exciting new models later.
Launched on Monday in the Rs 10,000 – Rs 43,000 price range, the new premium portfolio of 17 models features carbon fibre bikes such as ‘Red Dot'. The plan is to later take the range up to Rs 3.5 lakh with concurrent model additions.
Mr Pravin V. Patil, President — Urban Trail, Hero Cycles, said, “We're talking to French firms and also Porsche design for a tie-up, though the final development of these bikes is completely on our own. We have the brand and capability for that.”
“We chose to launch a separate youthful identity for a better premium brand association,” he added. However, he did not mention the investment behind the new product range.
New outlets
Of the 260 dealers expected to retail the new premium range, Hero Cycles will be opening 30 company-owned outlets in 25 cities, apart from 30 franchises dedicated to the brand. Additionally, 200 out of the existing 2,200 Hero Cycle dealers will also sell the range across 35 cities.
The Rs 1,700-crore company is targeting sales of 70,000 units in the premium cycle market (above Rs 10,000), which is at about two lakh units a year. In all, Hero sells 5.6 million cycles annually. “The middle-class is moving up the ladder and is looking for fitness. We see the emergence of a new market, similar to the premium motorcycle segment that is coming up,” Mr Patil said.