Hero Cycles to focus on high end; launches Red Dot at Rs43,000
21 Feb 2012
Hero Cycles, the world's largest maker of bicycles, has turned its focus on the premium sports segment, with bicycles that are priced higher than an entry-level motorcycle.
Launching the new Red Dot cycle priced at Rs43,000 under its new Urban Trails brand, the company said in Delhi that it plans to initially focus on cycles priced below Rs50,000; but going forward, it intends to launch even higher-range products.
Hero Cycles has tied up with German luxury carmaker Porche to help design the products. Japanese gear-making company Shimano is providing high-end gear systems for the company's premium products.
Red Dot is made with a carbon fibre frame and weighs just under 13 kg. The company said this is the same material in Formula 1 race cars and aircraft, as the material is strong, rust-free and yet very light.
Apart from targeting the domestic market, the company is looking at exporting these premium cycles to regions like Africa, Middle East, Europe, Canada and the US, for which it has set up a global sales office in Denver, and a global sourcing office in China.
Hero Cycles, which has a 45-per cent market share in the basic black cycle segment, sees growing potential in the premium segment with Indian customers getting more selective and fitness conscious.
