India's largest two-wheeler manufacturer prepares launches ahead of festival season as market share pressures mount in key segments.
07 Aug 2025 | 11640 Views | By Kiran Murali and Darshan Nakhwa
Following the launch of the new CB125 Hornet by Honda in July, Hero MotoCorp is gearing up to launch two new products in the 125cc motorcycle category ahead of the peak festival season as India’s largest two-wheeler maker looks to fend off the competition from its rival Honda Motorcycle and ...
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Following the launch of the new CB125 Hornet by Honda in July, Hero MotoCorp is gearing up to launch two new products in the 125cc motorcycle category ahead of the peak festival season as India’s largest two-wheeler maker looks to fend off the competition from its rival Honda Motorcycle and Scooter India.
This comes at a time when Honda overtook Hero in retail sales in India for the month of July.
“In the deluxe 125cc segment, we are strategically poised to disrupt the market with the forthcoming launch of a new 125cc with best-in-class technology features and style, and a refreshed 4D 125cc variant. Both are designed to offer compelling value and enhance our competitive edge,” Hero MotoCorp’s management told investors on Thursday.
Hero MotoCorp’s 125cc motorcycle portfolio currently consists of four models - Xtreme 125cc R, Glamour, Super Splendor XTec and Glamour XTech. The automaker has a market share of around 12.8% in the motorcycle segment with engine capacity of more than 110 cc and up to 125cc. Hero MotoCorp trails behind market leader Honda and Bajaj Auto in this segment.
“In the 125cc category, Xtreme is positioned for performance. Then there is style, where the Glamour is positioned. And then there is efficiency and mileage, where Super Splendor is positioned. There are three very distinct audiences, and each of these three products has a very strong value proposition,” the management said.
“We are augmenting the portfolio further in this quarter, too, making us stronger in each of these three vectors, and we believe that will help us gain significant further improvement in market share in 125cc.”
Although Hero MotoCorp maintains its dominant position in the 100-110cc entry-level motorcycle market, its leadership is being challenged by Honda's entry into the entry-level segment with the Shine 100 models.
Hero MotoCorp’s once-ironclad grip on the market has been loosening - its market share has been consistently slipping. It decreased from 37.04% in FY21 to 28.61% in FY25 while Honda has been steadily encroaching, boosting its share from 25.58% to 27.17%, narrowing the gap to a razor’s edge.
The demand for entry-level 100cc and 110cc motorcycles - Hero’s bread-and-butter segment, powered by models like the Splendor, HF Deluxe, and Passion - has been on a declining trend over the last couple of years.
Their share of total two-wheeler sales dropped from 37% in FY21 to 28% in FY25. The 125 cc segment, on the other hand, saw its share rise to 18.5% from 16%.
While Hero MotoCorp refreshed in 100cc lineup with the new Delux in July, the automaker’s long-term strategy is a greater focus on the 125cc and premium segments, and electric vehicles.