Hero MotoCorp plans to introduce three to four more premium motorcycles during the remaining five months of FY27 as it looks to strengthen its presence in higher-capacity segments, where its market share remains below 2% despite its dominance in entry-level motorcycles.
The planned launches will follow the recent updates to the Xtreme 160R and Xtreme 250R in October and form part of the company's strategy to fill gaps in its premium motorcycle portfolio.
"We will continue to address the wide spaces in our premium portfolio through further launches. You can look for three to four key launches in the remaining parts of this financial year," Chief Executive Officer Harshavardhan Chitale said during the company's Q2 FY27 earnings call on Thursday.
Chitale said Hero was focusing on four brands to drive growth in the premium motorcycle market: Xtreme, Xpulse, Karizma and the motorcycles jointly developed with Harley-Davidson.
"We are looking at four brands as our drivers of growth," Chitale said, adding that the company planned further product introductions and portfolio expansion across these brands.
He indicated that the Karizma range could see product refreshes and extensions into new categories. However, the company has not disclosed the specific motorcycles, prices or launch dates.
The expansion comes as Hero attempts to improve its position in a market where it has struggled to replicate its leadership in commuter motorcycles.
According to the company's Q2 FY27 investor presentation, Hero's premium motorcycle market share stood at 1.9% during H1 FY27, down 30 basis points from a year earlier. In comparison, the company commanded an 85% share of the 100cc motorcycle segment, an increase of 390 basis points.
The challenge is becoming more significant as demand shifts towards higher-capacity motorcycles. According to SIAM data, domestic dispatches in the 150-350cc motorcycle categories increased 31% year-on-year during H1 FY27, considerably faster than the roughly 5% growth in the 100cc and 125cc commuter categories.
Hero dispatched approximately 28,000 motorcycles in the 150-200cc category during the first half. In comparison, TVS Motor sold 3.34 lakh Apache motorcycles and Bajaj Auto sold 2.11 lakh motorcycles in the same capacity segment, reflecting the stronger positions of its competitors.
Acknowledging Hero's limited presence in premium motorcycles, Anuj Dua, Chief Business Officer, Premium Business Unit, said the company had significant room to expand. "So far, market share and the results have not been great, but that also tells how big the headroom for us is to grow," Dua said.
Hero recently introduced updated versions of the Xtreme 160R 4V and Xtreme 250R, priced from Rs 1.27 lakh and Rs 1.98 lakh, respectively, ex-showroom, Delhi. The motorcycles received changes to styling, electronics and rider-assistance features, with deliveries scheduled to begin in November.
Dua said the initial response to both motorcycles had been encouraging, with positive media feedback and an increase in customer enquiries at dealerships.
Within the existing premium portfolio, the Xpulse range has emerged as a stronger performer. According to Chitale, the adventure motorcycle franchise recorded more than 30% retail growth during H1 FY27 and held over 35% share of the adventure motorcycle segment.
The company is also expanding its dedicated Premia dealership network to support the new products and improve the premium customer experience.
Dua said the network had reached approximately 150 stores and would be expanded further across major cities with significant demand for premium motorcycles.
"The whole focus on this expansion will also be kind of supported by a fact that the community building efforts across all these Premia dealerships will start from December onwards in a very structured manner," he said.
Hero has also strengthened its manufacturing operations to support the strategy. During the earnings call, Chief Financial Officer Vivek Anand said the company had expanded its dedicated premium motorcycle assembly line at Neemrana.
The premium motorcycle expansion is part of Hero's broader investment programme. The company has maintained its FY27 capital expenditure guidance of Rs 1,500 crore, with approximately Rs 600 crore deployed during the first half.
Chitale said Hero would continue investing in new products, manufacturing capacity and brand building to gain market share, even as rising commodity costs put pressure on margins.