Hero MotoCorp Ltd., India's leading two-wheeler manufacturer, is implementing a comprehensive strategy focused on premium motorcycles, scooters, and electric vehicles (EVs) to secure and expand its dominant position in the domestic market. The move comes as the gap with competitors, notably Honda Motorcycle & Scooter India, has narrowed due to shifting consumer preferences towards scooters, a segment where Hero was historically underrepresented.
Expanding Scooter Portfolio and Market Share
Recognizing the growing demand for scooters, Hero MotoCorp has significantly bolstered its scooter lineup in recent years. The company now offers a full range of internal combustion engine (ICE) models, including the Pleasure, Destiny, and Xoom, alongside a robust selection of electric scooters under its VIDA brand. This strategic expansion has already yielded positive results, with the company reporting significant market share gains in recent quarters.
“Part of the reason why our lead narrowed was due to a trend towards different kinds of two-wheelers that were becoming more prominent. For example, scooters grew far more rapidly than motorcycles due to urbanization. There we were under-represented,” stated Hero MotoCorp CEO Harshavardhan Chitale. “We now have a full product basket and with that, we actually gained significant market share in the last two quarters.”
Push into Premium Motorcycles and EVs
Beyond scooters, Hero MotoCorp is making a strong play in premium motorcycles, a segment experiencing faster growth than traditional commuter bikes. The company intends to launch at least two to three new premium models in fiscal year 2027 (FY27). Concurrently, its electric vehicle division has seen rapid growth, with sales surging nearly threefold year-on-year to 144,000 units in FY26. Hero has quickly climbed to the fourth position in the electric two-wheeler market, surpassing early frontrunners.
Significant Capacity Expansion and Investment
To support its ambitious growth plans, Hero MotoCorp is committing substantial capital expenditure. The company has earmarked ₹1,500 crore for FY27, primarily to double its ICE scooter manufacturing capacity and more than double its EV production capabilities. This investment underscores Hero's confidence in sustained high growth for its electric vehicle offerings and its overall strategy.
Global Ambitions and Fuel Efficiency
Exports represent another crucial pillar of Hero MotoCorp's expansion strategy. Despite being a relatively late entrant into international markets due to its former joint venture structure, the company has rapidly caught up, achieving approximately 40% annual growth in exports over the past two years. Operating in 52 countries with manufacturing plants in Bangladesh and Colombia, Hero aims to further increase its share in overseas markets, driven significantly by its premium product offerings.
Domestically, Hero MotoCorp continues to leverage its reputation for fuel-efficient products across all two-wheeler categories, a key differentiator that becomes increasingly important for consumers. The company anticipates outperforming the industry's projected high single-digit growth rate in the current fiscal year.