Hero MotoCorp Identifies Five Pillars to Drive Next Phase of Expansion

Hero MotoCorp Ltd has identified scooters, premium motorcycles, global markets, electric vehicles and parts and accessories as key pillars to accelerate growth and gain market share over the next few years.

Speaking during an analyst call held after the company’s Q3 FY26 results, Chief Executive Officer Harshavardhan Chitale said these segments offer significant headroom for expansion and will anchor the company’s next phase of growth.

“We see big headroom for growth and market share expansion in scooters, premium motorcycles, global markets, EVs and parts and accessories,” Chitale said. “Each of these five will be big opportunities of growth and we are focused on accelerating and gaining share.”

According to Chitale, macro trends such as urbanisation, traffic congestion and increasing participation of women in the workforce are driving scooter adoption. “If these macro trends continue, scooters may have a higher growth rate going forward versus motorcycles... We need to grow much faster here and be a bigger player in this category,” he said.

Management also expects premium motorcycles to continue gaining share as incomes rise and customers upgrade to higher-value products. At the same time, entry-level motorcycles have begun to recover.

“Across segments, we are seeing growth. After many years, we also saw strong growth in entry and core motorcycles,” Chitale said. He added that GST-led price benefits and improving rural sentiment are supporting recovery in these categories.

Electric mobility is emerging as another key growth engine. The company’s electric mobility arm VIDA has been expanding its footprint, and management said the EV segment is seeing strong growth momentum.

“We are seeing strong growth in the EV segment. Growth is broad-based across all segments,” Anand said.

Global markets are also expected to play a bigger role in the company’s growth strategy. Exports have recovered in recent quarters, supported by new market entries and product launches. Management said global business will remain a key pillar for market-share expansion.

Hero MotoCorp reported a 50% year-on-year increase in its global business volumes during the first nine months of fiscal year 2026, marking the export segment as one of the company's fastest-growing divisions.

The two-wheeler manufacturer also has the largest vehicle parc in India, which also supports growth in parts, accessories and after-sales services. Chitale said this segment offers strong profitability and growth potential due to the company’s large installed base. In Q3 FY26, its parts, accessories and merchandising business recorded the highest-ever quarterly revenue of ₹1,673 crore.

Alongside growth initiatives, the company is strengthening its supply chain to mitigate disruptions and improve resilience. “We will focus on ensuring our supply chain is flexible, robust and resilient,” Chitale said. “There will always be disruptions, but we need to remain agile and prepared.”

Customer experience is another key focus area. The company is investing in pre-sales and post-sales experience, digital initiatives and dealership upgrades to strengthen brand loyalty and drive repeat purchases.