Hero MotoCorp maintained its leadership position in the domestic two-wheeler market during the financial year 2026 despite strong competition from Honda Motorcycle & Scooter India and managed to slightly widen the gap with the Japanese player.

The company dispatched 6.07 million units in the domestic market during the financial year 2026, compared with Honda Motorcycle & Scooter’s domestic sales of about 5.75 million units, giving Hero MotoCorp a lead of more than 300,000 units in the country’s largest two-wheeler market.

The domestic market remains the backbone of Hero’s overall leadership, given the company’s strong dependence on the local market, unlike Honda, which has a strong export base.

The gap between the two companies in domestic volumes widened slightly in the financial year 2026 compared with around 286,000 units in the previous year, indicating a stabilisation in Hero MotoCorp’s performance after a period of pressure.

In the financial year 2025, Hero’s domestic wholesales stood at about 5.61 million units, while Honda recorded domestic volumes of about 5.33 million units.

The rivalry between the two companies has intensified over the past few years, with Honda steadily closing the gap through consistent growth, particularly in scooters.

However, Hero’s entrenched position in the commuter motorcycle segment has helped the company defend its leadership in the domestic market.

The competitive landscape was more challenging for Hero MotoCorp in the previous financial years, with the Indian player losing its leadership to the Japanese player in a few months.

Hero’s sustained leadership in the domestic market was supported by continued demand for its commuter motorcycle portfolio, particularly the Splendor range, which remains a key contributor to volumes in rural and semi-urban markets.

The automaker has also been focusing more on the mid-size and premium segments to ride on the premiumisation trend, but has been met with limited success.

The company also benefited from incremental growth in its electric mobility business, which added to its domestic dispatch momentum during the year. The expansion of Hero’s electric vehicle portfolio played a growing role in strengthening its domestic position.

Registrations of its electric scooter sold under the Vida brand nearly tripled during FY26, helping the company increase its share in the electric two-wheeler segment. The rapid growth in electric volumes provided additional support to overall domestic performance at a time when competition in conventional segments remained intense.

Honda, meanwhile, continued to rely on its strong scooter portfolio to drive domestic sales. The company remains a leading player in the scooter segment, though its earlier dominance has moderated as competitors such as TVS Motor Company and Suzuki Motorcycle India expanded their presence.

This shift has created a more competitive environment in urban markets, where scooters account for a significant share of demand.

In commuter motorcycles, Honda continued to face headwinds against Hero’s deep-rooted dominance, which limited its ability to significantly alter the domestic market hierarchy despite expanding its entry-level product portfolio.

Hero’s extensive dealer network and strong brand recall in rural markets continued to provide structural advantages in this segment.

In terms of total dispatches, which include exports, Hero MotoCorp closed FY26 with dispatches of 6.47 million units, while Honda dispatched 6.37 million units. The difference between the two companies stood at just under 100,000 units for the second consecutive year.

Looking ahead, production plans indicate that competition in the domestic market will remain intense. According to industry sources, Honda is targeting production of about 6.79 million two-wheelers in the financial year 2027, while Hero MotoCorp plans output of around 6.92 million units during the same period, about 200,000 units higher than Honda.

TVS Motor, which surpassed Yamaha in 2025 to become the world’s third-largest manufacturer by sales volume globally, is now targeting double-digit growth in its two-wheeler production to 6.8–7.2 million units in FY27. This production target would position TVS Motor to challenge Honda for the number two spot in India’s two-wheeler market.