Hero MotoCorp, the country’s largest two-wheeler manufacturer, has set ambitious targets for FY26, aiming to outpace the industry’s projected growth of 6-7%.
The optimism is driven by a strong Q4 performance, a robust marriage season, and sustained momentum in both its core and premium segments.
In its post-earnings call, the company reported significant market share gains — 600 basis points in the entry-level segment and 250 basis points in the 125 cc category during the March quarter — both key drivers for rural market growth.
The company said it will continue to grow its market share in retail sales this fiscal, led primarily by entry-level and 125 cc motorcycles.
“We have seen a strong bounce back in the entry segment, also in the 125 motorcycles. The growth in the 125 cc segment with product interventions, process improvement, is something that is helping us go forward,” company executives told analysts.
Hero MotoCorp sold 5.9 million two-wheelers in FY25, up 5% from 5.62 million units in FY24.
The company is also betting on electric vehicles (EVs) to power its next phase of growth. To expand volumes and gain market share in the EV space, Hero is preparing to launch two affordable electric two-wheelers in the first half of FY26, likely in July.
“We are planning two new affordable products in the first half, most likely in July. That will help us accelerate our growth and gain market share,” Hero MotoCorp’s senior management told investors on Wednesday.
Hero currently sells EVs under the Vida brand, with its portfolio consisting of the Vida V2 in three variants—V2 Pro, V2 Plus, and V2 Lite—priced between ₹74,000 and ₹1.15 lakh (ex-showroom). The company sold 58,503 electric two-wheelers in FY25, according to SIAM data, and is targeting breakeven in its EV business within a couple of years, supported by monthly sales of 25,000–30,000 units.
The company has also filed for PLI approval for its Vida Pro electric scooter and expects to receive clearance by July.
Meanwhile, Hero’s spare parts business continued to perform strongly, with revenue rising 15% year-on-year to ₹1,553 crore.
On the financial front, Hero MotoCorp reported a 6% year-on-year rise in net profit to ₹1,081 crore for Q4 FY25, compared to ₹1,016 crore in the same quarter last year.
