Hero Moto Corp: Hero Moto Corp is an Indian multinational motor manufacturer with a domestic presence in the Indian market. The company’s state-of the art manufacturing facilities in the multiple countries allow it to cater to the diverse need and preferences of the rider across the globe with a wide range of products. It has a market share of 30% in the Indian stock market. The Munjal family is the biggest stake holder in the company with a stake of 34.75%.
Resignation of the top executives: Since Feb 2025 top executives are resigning from the organization. In the month of Feb-2025 Chief executive officer, Niranjan Gupta and chief business officer Ranjivit singh left the organization followed by Reema Jain who served as the chief information and digital officer and the executive management team member Sameer Pande, who held the position for talent management. After the resignation by the top executives there is a crisis in the leadership, which effects the market share and the share price.
Effect on Company position and share Price: Being the market leader it had 30% of the stake in India but within a period of a few month it has been replaced by the Honda which has became the new market leader. Is it an indication of the the fall of the giants or just a simple switch of the job or being removed by Munjal family due to underperformance or not being liked by their family members. Share price of the Hero moto cop is at the 52-week-low. Following the news share has fallen by 3% while unexpectedly its share price has fallen by approximately 40% in last 6 month.
What the company has to say about the resignation of the top executives: According to the organization these type of departure happen in such a organization it does not effect the company’s performance neither there is any internal issues. Though the sources said they were not liked by the Munjal chief due to their underperformance. During a company wide -town hall meeting on Feb-14 Pawan Munjal addressed approximately, 5000 employees He stated ” I have my eyes on you signaling a stringent approach to performance within the organization after that the resignation were followed.
Tough to hold its market share: Following the resignation by the top executives and the tough competition by the two giants TVS and the Honda who are trying to increase the market share, time will only explain how the Hero moto cop will deal with the situation. The significant turnover within the leadership team due to the resignation by the senior leader not only increasing the competition with the Honda group but the sale of the hero moto cop also reduced by 17%. It is also facing a strong challenge by TVS as it has already surpassed the Hero Moto Cop in sales.. Increasing competition need a strong and strategic response but with the increase in resignation which is showing the fumes of internal problem it is tougher to hold the position for Hero moto cop. At the same time it is a golden opportunity for the market giants like TVS and Hero to increase their market share.
The future of the Hero moto cop lies behind the thought process and the cautious approach by the management because if some fumes come out of the company about internal issues the investor will look forward to pack their bags and move toward the other leaders of the market which will cause a great failure of the organization.
The future of the Hero Motocorp hangs in the balance as how it resolves these critical issue, and stake holders will be undoubtedly be watching closely to see how the situation unfolds. The response from the remaining leadership will be vital in determining the company’s future.