Hero MotoCorp Limited (500182) Earnings Call Transcript & Summary

Great. I think we had a delayed start today because of the fog. And I think our products that were launched brought a lot of clarity, and therefore, fog and clouds went away. So that's what we saw on the product. And we hope that you are very excited on seeing both of our launches as well as what we spoke about, what's coming in the future. Already we see a lot of exciting reactions on digital and social media of the products that are coming in. I was in -- so just a bit of background. Some of our investor friends are still taking time to come in, but they're not the only one. Because after the launch, I was made to rush to the off-track and then I went there and then rushed back to media stand. And then I was doing interviews and I'm rushing from there here. So if you think you're the only one doing the running around, I'm with you, and I'm doing more running around. But, thank you. Thank you for being patient, and thank you for joining us.

We have the slides now ready.

Yes. I'm told that this time, we do have many fixed income investors as well. So usually, we have investors who either recommend our shares to buy and write reports on us or who are actually buying. But this time, here we have the fixed income investors as well and therefore, my welcome to them also. Claps are in short supply. Okay. I won't take much time. What we'll do is that in the next 20 minutes or so, we'll try to cover some slides. The idea of these is to talk about overall strategy around the three pillars. We're not going to cover the entire business presentation today, what we are going to -- and this is just a recap of the launches that we're talking about that we did multiple new launches 2023, customer experience, as we spoke about, and of course, the financial performance. You've seen the margins. And again, I would like to thank the investors for being with us, for putting confidence in the company, which has resulted in doubling the market cap and therefore, the shareholders' value creation in the last 10 months. Claps? [Foreign Language] Okay. All right. So we are going to focus on three themes today, which is premium and EV and the third topic is being digital. And there's a reason why we have chosen this third topic is, as I spoke earlier in the day, digital and AI is going to power the top line, bottom line growth in future. And you will see what we are doing in that space, and I'm sure that you will get excited by it. May I now invite my colleague, Chief Business Officer of India Business Unit, Ranjivjit Singh, to talk about the premium; which will be followed by Swadesh, who is the Chief Business Officer for EMBU, to talk about EV; and it will be followed by Reema Jain, who is our Chief Information and Digital Officer, will talk about digital. And while they talk, I'll catch my breath and I'll take some rest. Thank you. Over to Ranjivjit.

Good afternoon, everyone. I hope all of you enjoyed the show so far, yes? And there's a lot more to see. So like Niranjan said, the show only goes on from here. So what I'm going to -- let me just put my slide thing here, it will help me. So what I'm going to talk about is -- yes. Okay. Thank you. I'm, at heart, a marketing guy. So let me start with the brand first. The brand is what really has fueled Hero MotoCorp and will continue to do so for the next 40 and multiples of that. And bringing in the Harley-Davidson X440 was such a phenomenal step up in terms of the brand association that we have. The brand is also then built with the culture of riding and the lifestyle riding space that Harley-Davidson stands for, building that out, that, of course, for the rest of the portfolio and the premium portfolio. And there are a number of things that we are doing there, and we'll talk about it as well. With that is really some cool merchandise. We'll also talk about the product portfolio and how we are expanding the product portfolio into white spaces and then proliferating even further. We'll also talk about the premiumization strategy and the experience that we give to our customers. Because end of the day, they're really looking for those kind of experiences when you look at the premium customer. So that really sets the agenda of what we're going to cover in my part of the presentation. And for the premiumization is concerned, the proof of the pudding is really in the eating. When you look at our previous Hero World in 2020, we had 4 models from a premium perspective. Today, you're seeing 7 models which are ready. So that's tremendous in terms of the progress, and it's only beginning, and it will continue. So what we've done today is analyzed the market and looked at where the white spaces are, occupied those. And then as we go further, we'll proliferate even further. One of the things that, as a company, that we strong -- we feel very strongly about is the differentiation and how we take things forward because our customers are spoiled for choice. They have options. So how do they really choose a brand and a model from Hero? And there are some really interesting things that, therefore, through the R&D center and all the associated functions we come up with is how do we make it such that the customer actually chooses us based on their different needs. And their different needs can be from -- like we talked about, the Xtreme 125R, the ABS or the new engine. And like that, Karizma being absolutely top of class in terms of its functionality, technology, modernity, bringing that into, of course -- I mean the -- what do I say about HDX 440. But then today, what you've seen is about the Mavrick 440 and bringing that modernity, bringing the techno parts, bringing the wider tires, a lot of that is at play here. And what we -- the HDX -- so amazing kind of ramp-up that we're getting in terms of the actual deliveries. We got more than 25,000 bookings. In December, we were able to deliver around 2,000, 4,000 in -- coming in December, 2,000 before that in October. And then as we go forward, we're augmenting the supply and we're able to meet the expectations. Of course, this is an impatient generation. They want their Harley-Davidsons earlier, and we're doing everything possible to get that capacity going up, and that's what you see here is the increased capacity, which is a great thing to do to be able to serve those needs and then expand further. [Presentation]

So again, here, in Karizma, we covered a little bit of this even earlier. But you've got to experience it to believe it. The kind of comments that come on, on social media, the nostalgia that there is and the delight when they're receiving the Karizma, every single delivery that we do is like a celebration. And that's quite an experience that we are having right now of the kind of energy that we're experiencing with our customers. And of course, we've even -- we've gone beyond the 1,600 to about 2,000 deliveries. Again, this is something that we're augmenting the suppliers to meet the expectations of our customers. Mavrick 440, wow. I think the signature thump was absolutely mind blowing. It reverberated throughout. We all experienced that today. The way it's been designed is; someone says it's beautiful. I think it's -- like Vijay said, stunning. I think it's a beast. I think it's fantastic. I mean almost so many adjectives are coming for this one and the initial reactions that we are seeing from what we have just launched is absolutely outstanding. Outstanding. And there are some amazing technology, modernity and it's clearly targeted towards a younger customer, where the younger customer is really wanting that option of what they can do with a roadster. So it's a modern roadster. We're really, really proud of the work that the teams have done in building this out. We will keep following the progress of this one. Xtreme 125R. I was talking to a few of the people who saw it for the first time, and today, of course, I've written it. And I can tell you, if any of you -- anyone here is a biker? Anyone rides bikes? Anyone? Few of you. I really encourage you to definitely try this one out. It will put you in another state of mind when you ride this one. The comfort -- you will feel the comfort. And then if you really go and you race ahead and then stop you'll enjoy that feeling as well. So there's a lot to be discovered in this one. This is another one that very thoughtfully, we've really come out for our customers. This is a segment that customers, after COVID -- there used to be upgraders before from 100cc upwards. But after COVID and with the inflation that took place, a lot of downgraders from, let's say, the 150, 160cc bikes have come into this segment, and they are looking for performance. They are looking for styling, and they are looking for tech. All of these things, there's no other brand that has the amount of goodies that this one has. And again, like I said, seeing it is believing it. Trying it out yourself is where you will actually will get the fun. [Presentation]

So the first thing I'll say, these are not concepts. These are real. We actually are serving our customers from there. There are 3 already opened. And our dealer fraternity is so excited with Premia. Where we've already opened the kind of response you're getting from customers in terms of the happiness score, this NPS score, significantly higher. Significantly higher. It's the whole experience. They haven't experienced this kind of thing in the automotive sector, at least in two wheelers. So it's something to watch out for. It's a beautiful new environment that we've created, and it's very natural, to think about it. The kind of customers we are attracting are different, right? Let's acknowledge that. And therefore, you need a house that will bring in the different kind of customers, to bring in the Mavrick there, to bring in the Harley-Davidson X440, to bring in the Karizma there. So we need a different environment, and this has been very thoughtfully researched, designed and then created. And like I said, the rollout is happening. Sorry. Okay. So there are different components here. As you can see, it's very premium in terms of its look, but it's also very really natural. It's got the performance, it's got HDX, it's got electric. It's got a lot of these things, which that kind of customer is looking for. And therefore, our premium portfolio is coming up very well here, including a very good digital experience, a phygital experience as well as merchandise. Merchandise, if you get the opportunity, again, do visit the merchandise part as well. You'll see how we're thinking and completely taking the merchandise to a completely different level. So as I said, 3 stores are live in Calicut, in Bangalore and in Gurgaon. We've got a lot of interest from our dealers, and we will have 100 by June. And there will -- when you walk into them, you will experience it, the whole stunningness of these stores. But what goes along is also the service for our premium customers because it's not just about the infrastructure. Of course, we'll have the ramps. Of course, we'll have the kits. And of course, we'll have the sales -- the service training and the qualified personnel, but then also the environment and then the whole digital journey for them, bringing in the one app, which we have, which -- it must be another record that we've created about 5 million downloads in about a year of Hero One app. There's a lot of interaction going in 3.5 million is actually on a monthly basis, they're all coming to the app. So it's phenomenal, the kind of capabilities that we are building around these. It just takes the game to the next level. [Presentation]

We can't change these films fast enough. It's at 280. Now we're already at 300. So 300 and 300 days, 400 by the end of March and onwards. So literally, our dealers are participating so much in this. And the reason for that is very clear. It's a very uncluttered premium environment that's created. And our customers are -- just the whole thing of coming there, seeing that -- a very different kind of an experience in the Hero 2.0 elevates the brand experience. And so we're seeing tremendous amount of increase in the conversion rates, over 33% increase in conversion rates from the stores that have already moved to Hero 2.0 from their previous versions. So that's the kind of change that we are seeing. We talked a little bit about this driving the whole culture of riding. And when you look at the Xdrags, already over 50 Xdrags that we did just the last 8, 9 months that were centered around the Xtreme 160R 4V, which is the fastest in its segment. And people tried the product and they loved it so much that they went for the top model. So this is premiumization literally at play that when people experience, for example, the USD forks that we offer there, they just get blown away, this is the one I want. It's kind of different from the virtual room and scene. So these are actual kind of activations that we do and a lot of this is happening. Similarly, I mean, fantastic to see the results of the Dakar and the podium finish that we have. And our teams are working together in terms of how to leverage that and amplify that in the Indian market. And when we get more and more popular, for example, the kind of stuff that we did all through the different kind of activities. So that's the summary that -- I might add, what you would get from [indiscernible] is a very, very good strategy going in premium. It's like [indiscernible], people normally say, yes, we need the products. The products are important, but that's not the only thing. You need a portfolio and you need to keep innovating, for sure. But beyond that, there's the brand association, which is absolutely unique and phenomenal that we have, there are in-stores activities that we are doing, digital being the first way of call because our customers are digital natives. So we just have to keep pace with them. And make sure that we have our right to win. Every time there is a lot of discussion internally in the company, why should we really launch this product. A lot of thought goes behind bringing it so that it makes it easier for our customers to choose us and stay with us, upgrade with us and keep the journey on. And now with the portfolio that we've got and the retail experience that we have created, it becomes a far more fundamental journey that we have, and I feel very, very incredibly proud of the work that the team has done. So with that, thank you very much.

Thank you, Ranjiv. Requesting Swadesh. Team, the videos are not visible for Zoom. Could you please pick it up again? Take a minute? That's okay. Do get started, and we will get the thing going. I can see the presentation here. Ranjit?

It's not showing up. Okay.

The slide will be visible here. It will come. You don't need to do...

All right. Dear investors, welcome to the Hero World of 2024. Hope you all have a fruitful day so far. A lot is happening at Hero in this very first month of this calendar year and a lot on offer that we have [indiscernible] as well from our emerging mobility business. The EV industry is globally growing really fast and the 2-wheeler EV industry in India is also looking up with much more customer adoption coming in; good, healthy competition; a lot of product options in the market; and obviously, the infrastructure, which is coming up to support the customer adoption. Last week, I was at the World Economic Forum along with Niranjan, and EV sector continues to be on the mind of both private and the public sector. Not just because the world has to do the transition to clean energy, but also EV technology provides more efficient powertrain and much better customer experience and connected experience. So with that, the industry has to do a lot of things to really grow the sector well. And I think now going forward, the focus is going to be expand the portfolio, to bring more affordability, accessibility to the customers and also accelerate the growth and the setup of the infrastructure like charging infrastructure to make it easier for customers to adopt. So it becomes a no-brainer for customers to go towards EV. And you'll see glimpses of that when I present the update. So with this, there is definitely an urgency in bringing the right solution and the right infrastructure for our customers. And we have been rightly on that this year and continue to expand next year as well. So I'll touch upon five areas. As I said, we started with a premium positioning of Vida brand. And as the category is moving into early majority, we need to make sure that we are aspirational in every segment we play in, we are affordable for that segment for that customer and we are accessible to them anywhere they want to, either buy or service, right? And that's going to be the theme for Vida going forward. So I'll cover quickly of what we have learned from our first product, what are the customers really liking and how we are taking those learnings into the portfolio, how we are bringing multisegment portfolio very soon. We will talk about how we have expanded the accessibility of both our sales and service points, but also charging infrastructure. And some of the capabilities we are looking to build so that we get ahead in the race of EV, right? So quickly jumping into it. As you know, we launched about a year back and the customers are really liking these key aspects of our Vida V1, which is the unmatched performance, especially the removable battery, which gives them easy option to charge their batteries at home if they live in a high-rise. Obviously, the best speed and the range, which we are able to provide and the rideability and the reliability of it, which people are really loving. It also is, obviously, fully loaded with a lot of connected features. But along with that, the modularity and the flexibility around the boot space, the connected features like cruise control, the custom mode, all of these. So I'm not going to go in each of these, but this has been a fully loaded connected vehicle, which people are really, really enjoying. And this becomes our base as we move into expanding across the segments. So as I mentioned, this year, you're going to see a lot of action from Vida on the portfolio, going from the premium offering of the last year. You'll see a full family of scooters coming in the first half of the fiscal, going from premium to mainstream to mass. And we continue to improve our cost competitiveness and profitability. So we'll continue to refresh these models and become much and more performance ready and profitable ready. While we continue to bring those refreshes, we'll also move into other segments like last mile mobility, micro mobility, some specific problems as we expand our scooter portfolio. While we have a full landscape on the scooters, we being the motorcycle leader, we can't leave the electric motorcycle standing behind either. Obviously, electrification started with scooters [indiscernible] follow with motorcycles as well. I don't want to dive in any timing right now, so don't worry about the x-axis. What I want to focus is on the y-axis is how we are working on through and through multiple segments of motorcycles. And obviously, you all know that we are working very closely with Zero Motorcycles from California, where we'll start with the first product coming out soon. But our idea is that we build a platform, which allows us to bring different performance vehicles and different form factors from the same platform. So you'll see that coming out as well as strong motorcycle portfolio. Now going into accessibility. We -- last year, when we launched, we were in 3 cities. That was by choice with our experience centers and Pods, Vida Pods, which allowed us to learn what is the customer journey, which is really clicking, what do we need to do. Then we moved to 11 towards the end of the fiscal. And this year, we have -- when we started expanding, we have literally expanded to every city per day, and we are now in 100 cities and 150 dealers across 4 formats. We still have our experience centers, Vida Experience Centers. We have EV exclusive dealerships, which are called Vida Hubs, present in 8 cities and we'll probably end the fiscal around 16, 20 of those and many more coming next year. We are present, as Ranjivjit showed in the Premia and the Hero 2.0 stores. So we bring that Vida experience across the formats. Not just that, as I mentioned, we have to continue to build the infrastructure so that customers adopt easily. I'm very delighted to say that we are already -- as Vida network itself, we are present in about 26 to 30 cities and about 800 chargers from Vida network. But you also are aware that we partnered with Ather and created an interoperability so that Ather customers can use our network and vice versa. And with that total network, this becomes 100 cities and almost 2,000 chargers. And we'll continue to expand. Obviously, Ather will and Vida as well. We will have a huge presence. And this, by the way, is one of its kind in the world. Also, we got the standards on the connector, which is also one of its kind in the world for 2-wheeler. So as I said, we need to be aspirational, affordable and accessible. How are we going to do that when this technology is changing so much. There's so much to wrap your head around. It is only by building capability in various aspects. So obviously, you will see best-in-class products coming out in all segments, as I said, for scooters and motorcycles. We will continue to leverage the Hero scale, not just for sales and service, but also in supply chain and manufacturing. So we bring the cost leadership in EV, which is going to be the winner -- winning factor, but also continue to build new capabilities around this tech and design which EV industry needs and we are heavily focusing on that. We, obviously, will continue to build our charging network as well. And also, I want to mention this is that EV as a new technology allows you to open new segments because it allows you to create new form factors of vehicles. And we showcased some of them at EICMA and here as well, and we'll continue to innovate where EV allows you to open new segments and not just be ready for the transition of the existing segments. So with that, I want to close. And happy to take your questions at the end. Thank you. [Presentation]

Let's go on to the next slide.

Good afternoon, everyone. All right. So you know it's the best time to be in tech when CEO is speaking about AI more than you. So you can understand the pressure I'm in. But with that thought, I just wanted to set a little bit of context. So I move the slides from here, Umang?

[Foreign Language] Go ahead. With the pointer? Yes.

All right. So a little bit of context what's really happening in the industry, what's happening in the auto industry as well, what we are doing at Hero. So you've heard a lot about AI even today with -- when Niranjan spoke about AI. AI is really disrupting the businesses, taking away a lot of lower-end pyramid of the jobs. It's also redefining new experiences, like you can -- some of the stores which we are looking in U.S. where there are cashier-less stores which are coming up with the help of AI. We also see there's a hyper personalization which is happening, driven through AI. As well, what's really happening at our auto industry as well is really connected vehicle is something which is becoming the smartphones on the wheels, right, where you can really play around with your vehicle using an app. What's really happening is also that our customers are getting more and more digital savvy. 80% to 90% of the customers have already made up their mind through digital before they come into the stores. And what some of the -- our customers are also looking at, some of our young generation is really instant gratification, right? They want the information right there at their fingertips whenever they want, whether it's about booking or whether it's knowing about the product or about getting a service booked. So with all that, we are not far behind the needle. In fact, we are leading the way in the industry to redefine some of these experiences, whether it is connected vehicle, which Swadesh spoke about, Ranjit spoke about the customer journeys, which we are building through our website, all that we are kind of leading the way in the industry. Digital is not just being business enabler. We are the business itself. We are -- some of the things which we are creating is redefining how the business is getting done. When Ranjit was speaking about some of the Premia bookings which we are doing, it's kind of changing the business model from a push-based business model to a pull-based business model, enabled all through digital. So that's why we're saying we are moving away from just doing digital to being digital itself, to being a digital company as digital being business itself. All right. So as I was telling in the last slide that our customers are looking for instant gratification. They want their information right there wherever they are. So what we're looking at is the customer doesn't have to even walk into the store. We want to provide all the experience sent to them wherever they are at their ecosystem, right? So if -- what you see is some of the booking journey as well as inquiry journeys, which we have created in our website, where you get all the information right there as soon as the customers goes into a website or interact with us. A couple of things I wanted to call upon when we were doing the HD booking as well as Karizma booking. We didn't have even a single bike sent to the stores initially. And what we really did, created those experiences where customers can really experience the bike, whether it's through 360-degree AR/VR configurator, which you will see there back at the Hero Hub or it's experiences -- experiencing the sound of an engine of a Harley. So all that we are redefining which could help us -- which will help us redefine and change the way the customers are really, really looking for. All right. When we do all this, our campaigns are also getting started -- is smarter. So earlier, we were doing a lot of broad-based campaigns, right? Looking at some of our data, we were just doing broad-based campaign. Now what we're doing is we build a property called marketing data bench. Some of you asked us, you've got an access of 115 million customers, what are you really doing about the database, right? What we're doing is, we've created a rich value proposition which is the marketing data workbench through which we are enriching and hydrating the data in the workbench and creating propensity models so that we can do proper data-driven marketing enabled through AI. So that is also something which is helping us to do much more targeted marketing. The other thing which we are doing is our campaigns are led by AI. I don't know how many of you got Mavrick buddy, AI buddy in your phone and did you guys play around it? Anybody? All right. All right. So that's how we're running our campaigns really, right, where we -- the AI is helping to answer any questions which you ask and get all the information without even you walking into the store, and that's something which the customers are also looking for. Hyperlocal, Ranjit spoke about. We are first one in the 2-wheeler auto industry to really do, which are near me campaigns, where our dealers are getting empowered to run some of the campaigns, looking at how our customers are located around the areas and things like that.

There's an echo. There's just [indiscernible]. Go on, keep speaking. I'll just get this out.

No, it's something else.

Don't worry. Don't worry. Keep speaking.

No. No. The...

The audience is getting an echo. I'm just muting here. How about the -- that's fine. It's still there. Yes.

All right. So I spoke about booking journey, prebooking journey, but what about after they made a purchase? How do we make sure they stick around with us and we create a lifetime value for them? And that's where our One app comes into picture. And some of that, you will also see in the Hero app. What we're doing here is we are getting the customers excited, connecting and attracted to the app so that they stick around with the app. The multiple value proposition, which is built in the app, whether it's booking your service journey, whether it's buying an RSA, buying GoodLife as well as playing around with some cool features which are there in app. A couple of things which we are doing more in the connected 2.0 version where the app also becomes an extension of you. I know Geetika spoke about man and machine app really is that integral part of man and machine where it becomes an extension of your bike. And some of the things which you can really do is you can do geofencing, you can immobilize, you can lock/unlock. A lot of things you can do through app without having you to go near to the vehicle. All right. So as we are -- as we're building this app, we're also launching a lot of industry-first feature. One of the things which we have done is we are first one in automobile industry to be in the ONDC. ONDC, I hope you're all aware, it's an open network for digital commerce with Government of India is building. We're the first one to be there. In fact, we are defining the auto taxonomy there, right, that this is how the parts look like. This is how the parts need to be sold. We're the first one to be there, gone live with few PDs, the idea really is to scale it up across for our parts distribution. Some of the image generation capabilities, which we have built, where you can imagine yourself anywhere and you can play around with a bike and then imagine yourself and generate AI. The last, but not the least, is the assisted journey for user manual, where you can ask any question and bot -- that GenAI bot will answer. So earlier, our consumers have to go through some Page 30 of line 24 to know something about the vehicle. Like now the customers just go in, ask chatbot anything about, know about power plug, know about any feature. They just get an instant answer right there. You can ask anything about the bike, and they will -- the bot will reply whatever is needed for you to -- after sales experience to do. All right. I'll skip the video because I know we're running out of time, but I know that in the Hero Hub, you'll see more and more of the app. With that, let me go to the next slide. One of the other thing which we have done is it's not about just building the customer journey, how we are also premiumizing the entire experience at our dealership Ranjiv spoke about. Today, we have a lot of financiers really sitting there at the dealership, where customers have to go in from one desk to other to look about -- to know about the financing option. We have created an aggregation platform called eFin. Right now, it is live only in NCR, but the idea is by April, we will scale it across Pan India. What does eFin platform does, it brings all the finances into one common aggregated platform, either the customers can do it to yourself journey or walk into the dealership without having so many financiers really sitting there and can figure out what is the best offer for them from a retail finance perspective. We've just gone live right now with 5 financiers in the NCR. The results are quite amazing. We've already done 500 sanctions from the platform and average time taken end-to-end for a sanction to really happen, which used to take hours and hours, is just 4.22 minutes, right? That's the power of the platform really. And again, as I said, we will scale this up across all our primary channels. And this could also be an avenue for us to unlock and monetize, right? I mean down the line, we could be that aggregator and monetize the platform as a more -- we drive this adoption across our ecosystem. All right. So as we're building these experiences, we need to drive monetization. My boss is an ex CFO, so he doesn't give money so easily until you show that what is the revenue impact it is creating and how these apps are really driving monetization and to add revenue growth. So while we do all this, it's adding to the overall top line of the business. Right now, we have small wins, but really, really confident that as we build this value proposition, it is going to significantly change and drive more and more monetization off of some of the products, which we have created. Few quick examples. Our inquiries are really going up. If you see the kind of investment and the properties which we are building from digital, from last year to this year itself, you've got 16 -- we moved up from 7.7% digital inquiries to 16.6% digital inquiry, right? So that's how when I spoke about that we're doing a lot -- earlier, we were doing a lot more broadband base marketing. Right now, we're doing a lot of targeted marketing through our -- generated through data analytics, which is helping us to get better inquiries as well as better conversion. Retail and exchange. We already had a Wheels of Trust platform. We've improved significantly to create that experiences and integrated buying journey as well. If you look at the retail, which we did using Wheels of Trust, right, when a customer comes, look for a value and then we do retail, we say, okay, this is the value of your bike and then they take a new bike. We've got around 83,000 bike versus what we did for last year. That's because the way we have kind of changed our journeys and created that integrated journey. As well, we just launched a new platform, which is our exchange platform. We are -- customers can come in and also look at an old bikes. That's also started to give a lot of results. I know Ranjiv spoke about what -- that we're changing how we are doing Premia, right? Moving away from a push-based model to a pull-based model and that's where digital is playing its role. We did -- the first ever digital booking, we started with Harley-Davidson X440 and some of the numbers, you could see 54% of our booking really came via digital channel. Without even a single bike there in the store, that's the kind of booking we've got. We've got 4 minutes the time of -- the first booking window -- the first month of the booking window every 4 bookings, we got per minute, right? That's what kind of customers kind of interacted with us, and that was the kind of pull of the brand. And some interesting facts, a lot of our bookings, right, came when the stores were shut down, like what we call it graveyard hours like after 12, right? Those are the people just came in and they booked the bikes, around 5,000 bookings really after graveyard hours, and a lot of bookings really coming from Tier 2, Tier 3 cities. All right. I spoke about app. And I just want to talk about what our app is doing. And some of the native digital companies, if you look at will really envy some of the numbers which we had. All right. So today, our monthly active users of the app are 1.2 million, a huge improvement from what we started earlier. Our daily active users, which is people who are coming to our app on a daily basis is 131,000, total installs of 3.5 million. That's not [indiscernible]. We're #1 in auto OEM in the Play Store app rating. Our app rating is 4.3 in the Play Store as well as 4.2 in the Apple store. So there's a lot of -- there's -- customers are really loving the app. And it's also helping drive monetization. In festive itself, we've kind of were able to send significant numbers of upsell and cross-sell inquiries to our channels, so that the customers come in and buy. Similarly, we are as, I told, the RSA as well as GoodLife journey, we see a significant uptick in overall buying from the app itself. It's a value proposition, which will help us to drive more monetization and cross-sell upsell. Imagine we have a base of 115 million customers. If 10% to 15% also adopt this app, the value is significant. So with all that, there was -- all right -- with all that, thank you very much. It's not all. What we are also doing is we are continuing to build a lot more value proposition with app. There's a lot more journeys which are coming up, whether insurance, whether it's subscription, even we are also improvising our entire service journey, right? So a lot of premiumization is also happening on service journey. I about eFin platform idea really is to do a Pan India rollout of the eFin platform. And while we do all this, we'll continue to monetize this asset and continue to add to the revenue.

Thank you, Reema. Thank you, everyone. Lovely. What we'll do now is open it up for Q&A. We're going to request all the speakers for the day, Mr. Bhan and Dr. Jaura to please come on the stage. Just give us a moment, we are getting all the -- just give us a moment. So Mr. Bhan and Dr. Jaura, please come. For those who are online, feel free to ask your questions on the app as well. Please have a seat.

We can start the question.

Yes. Sure. We'll take the first few questions from the audience here. [Operator Instructions] In the middle on the right, please do -- I'll get you a mic. Let's get the mics, please. I request you to introduce yourself, your house and then please ask a question. Ayushi, you also want to come down with the mic, so we can run around with the mics as we go by. I'm waiting for questions online as well. You can get started.

My name is Hitesh Goel, I'm from CLSA. Sir, my question is we can see a lot of impetus on premium, right? But when we are seeing the numbers. It's not coming through, right? Xpulse, we have seen. Xtreme, we have seen. Karizma and Harley have talked about supply chain constraints. So can you talk about what are these constraints, which are holding back these numbers, how should we look at it over the next one year? Because there are a lot of product launches, but competition is tending to do better. There was not -- Honda was not there in first half in the premium segment, right? Then also, we didn't see Hero's market share go up substantially. So we didn't talk about it.

So firstly, when a kid is born, it can't grow to 20 years age in 2 months' time. So when we launch Xtreme and Xpulse, we knew that building them will take time because we needed to upgrade our stores, the brand experience, the portfolio strategy, because we needed to move from a more commuter-oriented company to a premium-oriented company, which is what is being done. As far as Harley and Karizma, they are not constraints, they are by design that this will be a pull-based model. So will always run on 2 to 3 months' order book. So we're already expanding the capacity. For instance, the capacity of X440 has gone up from 2,000 per month that we started to ramped up to -- in January as we speak, it's already 6,000 per month capacity. In terms of fulfilling the stores, we were delivering from 100 stores and remember, we need to maintain the brand positioning also intact. And therefore, every store that we are qualifying, which will sell the Harley-Davidson is with very careful consideration of the parameters. And happy to inform again that from 100 stores, just as of last week, we've now expanded to 200 stores. So those are the Hero 2.0 stores which are getting certified. So all of this will build. So seeing the volume in the short term in a month or 2 months, that never happens. But as you build this, the bookings are exciting, and we're running an order book of 2 to 3 months. There are constraints, we're just upgrading the capacities in a timely manner.

Yes, please. You want to introduce yourself?

So this is Yogesh from HSBC. Just one quick question on Harley. Look, Hero is always a gold standard in sales and marketing and distribution. I was just curious if you feel you could have managed the HD distribution and sales a bit better, because you have these 3 premier showrooms. Was it -- shouldn't you have done the showrooms first and then gone with sales? Because some of the early feedback on sales experience is not very positive. So I'm wondering if it's something you guys worry or could have been done better?

Right. So Yogesh, let me answer. First of all, it's not from the 3 stores that we are selling. So the overall store is 100 stores, which is we started and that's moved to 200 stores very rapidly. These are pull-based model and not push-based model that you actually stock and then sell. This is based on the bookings that you do. As far as feedback is concerned, actually strongly positive. If you look at the way we do is the social media chatter and there are ways to do that. The positive on Harley is far more than the established premium brands. So in terms of the positive voice, which is there, it's almost close to around 65% and neutral is around 30% and then leaving only 5% negative. For a normal premium brand, there are almost around 15% negative social chatters. So when you look at overall in totality, the comments are extremely positive. And of course, it's heartening to see that any of the comments, even those 5% are around that we want to grab the Harley bike faster. So which is a good problem to have, and it's not a problem. It's by design that you have that and we're ramping up capacity and therefore, we stopped the booking, we have reopened the booking. It's a very different model that we are following. And every person who's buying a Harley, the Harley-Davidson X440, is extremely delighted because they're able to fulfill their dreams at such an affordable price.

Yes, do you want to go next? We'll take a couple of questions online after this.

Yes. I have 2 questions. One on this thing distribution...

Sonal, you want to introduce yourself.

So my name is Sonal Gupta. I'm from HSBC Mutual Fund. So just on the Harley and the distribution, because you're talking about that we're now going to 200 stores, 2.0 stores and then you're setting up 100 Premia stores. So I'm still a bit confused as to what is the intention with the Premia than if you're selling Harley everywhere?

Not everywhere. We have got 6,000 stores in Hero. So we are selling to only 5% of the stores. And these Hero 2.0 stores are very upgraded version. So they are certified on parameters. The Premia -- so you will have a Premia, you will have Hero 2.0, which is the upgrade and there'll be Hero 1.0 continuing. The premium products will sell through only the 2.0 the Premia. As the Premia builds up, you will get more and more in the premium showrooms. So the strategy is very clear.

Okay. And the other question I had was on the Vida. So essentially, what's happened like now because the subsidies come down very substantially. We're seeing now people sort of moving towards smaller battery sizes from 4-kilowatt, which is people are maximizing the subsidy to now 3-kilowatt and 2-kilowatt and I mean like, have you -- I mean, like while your is a very differentiated model with the replace of, I mean, like detachable battery, the thing is that you've designed a 2-kilowatt battery pack. So now if you have to downgrade to a 3-kilowatt scooter, I mean, like how do you do that, right?

Swadesh?

I can take that, yes. So actually, the flexibility and scalability is not just the fact there are 2 batteries, and they're removable and chargeable. Within the design of the battery, there is also a lot of flexibility. So you have actually answered the question. There is enough flexibility and Arun can add to that, which is allowing us to bring smaller size batteries -- capacity batteries, which will allow us to get into those affordable segments, as I mentioned earlier. So that is by design. And obviously, battery being the major cost driver, that will definitely help us bring the affordability down. But we along with our R&D, supply chain and production, working on many other areas where we will be able to bring profitably the price down and play in the affordable segments. So there's a full comprehensive approach. But by design, the battery allows us to do that.

We'll take a couple of questions online. There's a question from Chirag Shah. His question is in the premium portfolio, now that we have a bouquet of products, could we talk more about the gaps that we want to fill up in the next 12 to 36 months? So premium portfolio, what are the gaps that we have?