Hero MotoCorp, India's largest two-wheeler manufacturer by volume, is significantly ramping up its presence in the premium motorcycle segment. The company is strategically leveraging its partnership with American motorbike giant Harley-Davidson to achieve this ambitious growth.
Three New Premium Models Ahead
According to CEO Harshavardhan Chitale, Hero MotoCorp is set to introduce three new models in the premium segment during the ongoing financial year (FY27). This initiative underscores the company's stated objective of enhancing its premium market play, a commitment reiterated following its fourth-quarter results.
The collaboration with Harley-Davidson has already yielded a notable success with the launch of the Harley-Davidson X440T in December 2025. This 440cc motorcycle, jointly designed and manufactured for the Indian consumer at Hero MotoCorp's Neemrana plant, has performed exceptionally well. Despite a significant price differential created by a Goods and Services Tax (GST) hike on motorcycles over 350cc, the X440T has seen strong demand, even leading to capacity shortages in the quarter ending March 31, 2026.
Navigating GST Changes and Market Strategy
A key market factor influencing the premium segment is the GST rate rationalization implemented in September 2025. The government increased GST on motorcycles with engine capacities exceeding 350cc from 28% to 40%, while simultaneously reducing the rate for motorcycles up to 350cc from 28% to 18%. While the Hero MotoCorp CEO did not specify if the upcoming premium launches would fall into the under-350cc category, rival Bajaj Auto has already re-engineered parts of its premium portfolio, including Triumph and KTM models, to benefit from the lower 18% GST slab.
Enhanced Retail Experience and Global Expansion
Beyond product development, Hero MotoCorp is also upgrading its retail infrastructure for premium motorcycles. The company has activated 130 new dealerships, known as 'Premia' outlets, which offer a concierge-like sales and service experience tailored for premium customers.
Exports represent another critical component of Hero MotoCorp’s expansion strategy, currently accounting for nearly 6% of its overall volumes. Having been a late entrant to the export market due to its former joint venture and more recent independent R&D efforts, the company is now rapidly catching up. Hero MotoCorp's overseas shipments have expanded by approximately 40% annually over the last two years. The company operates in 52 countries, with manufacturing plants in Bangladesh and Colombia, and anticipates continued export growth driven largely by its expanding premium portfolio.