Hero MotoCorp is banking on its fuel efficiency advantage and India’s resilient demand outlook, even as global uncertainties stemming from the West Asia crisis weigh on other markets, according to CEO Harshavardhan Chitale.
The company said it has not witnessed any slowdown in domestic demand so far and remains confident about sustained growth in the world’s largest two-wheeler market.
Chitale highlighted India’s strong macroeconomic stability, noting that industrial output and inflation trends continue to remain supportive despite external shocks.
India’s resilience, he said, stands in contrast to several international markets where fuel rationing, price volatility, and supply chain disruptions have impacted mobility demand.
Hero MotoCorp, India’s largest two-wheeler manufacturer, continues to maintain leadership in the commuter motorcycle segment with nearly 90% market share. However, its overall wholesale share has declined to 28% in FY26 from 45% in FY12 due to rising competition in scooters, premium motorcycles, EVs, and exports.
The company acknowledged under-representation in these fast-growing categories and said dedicated business teams have now been created to strengthen its presence across scooters, electric vehicles, premium bikes, and international markets.
Hero currently operates in 52 countries, with its global business growing 42% last year and strong momentum continuing into the current fiscal year.
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Chitale said rising fuel prices could actually benefit Hero MotoCorp, as consumers increasingly prioritise fuel efficiency in purchasing decisions.
Hero’s motorcycles, known for delivering higher mileage than competitors, remain a key differentiator in the mass commuter segment. The company expects this advantage to become more relevant if fuel costs continue to rise.
“If fuel cost increases and fuel efficiency becomes a top-of-mind concern, then we should benefit,” he said, referring to the brand’s long-standing positioning around affordability and efficiency.
Hero MotoCorp has earmarked Rs 1,500 crore in capital expenditure for the current fiscal year, with similar investments planned over the next few years. The company is expanding capacity across scooters, EVs, and premium motorcycles, including a near-tripling of EV production capability.
A new parts distribution centre is also being developed in Tirupati to strengthen supply chain efficiency.
The company plans to launch around a dozen new models in the domestic market this year, alongside similar product rollouts in international markets.
Hero MotoCorp is positioning itself for the next phase of growth by doubling down on fuel efficiency, expanding into under-penetrated segments, and scaling its EV and premium motorcycle portfolio, while leveraging India’s relatively stable demand environment amid global volatility.
Hero MotoCorp is India’s largest two-wheeler manufacturer, known for its commuter motorcycles and strong fuel efficiency focus. The company operates in over 50 countries and is expanding into scooters, premium motorcycles, and electric vehicles to strengthen its global mobility footprint.
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