Hero MotoCorp has raised its growth forecast for India’s two-wheeler sector to nearly double digits in FY 2026-27, driven by strong demand, capacity expansion, and growth in exports, as the company accelerates its push into electric mobility.
Hero MotoCorp said on Friday it expects India’s two-wheeler market to expand at close to double-digit rates in fiscal 2026-27, raising its outlook from the high-single-digit growth it had flagged in May. Harshavardhan Chitale, the company’s chief executive, said momentum has stayed strong after a tax cut on automobiles last year, citing 14% year-on-year industry growth in the first quarter and 28% retail growth in July.
The company acknowledged that comparisons will become harder in the second half of the year because sales surged after the goods and services tax reduction in September last year. Even so, Chitale said Hero still sees positive growth through the remainder of the fiscal year and is now planning for a full year that could come close to double-digit expansion. Business Standard reported earlier this year that the company has been positioning itself for stronger market leadership through new product launches and a broader push into scooters, both petrol-powered and electric.
Hero is also moving quickly to lift production capacity, especially for scooters and its Vida electric vehicle line. Chitale said monthly EV capacity has already been doubled to nearly 30,000 units from 15,000 at the end of fiscal 2025-26 and is expected to rise to about 45,000 units before the end of the current fiscal year. He said channel inventory for Vida is almost exhausted, suggesting supply is tight because demand is running ahead of output, and added that another 10,000 units of monthly production capacity should come on stream by the end of this month.
The wider capacity push includes an extra 1,500 units a day for petrol scooters and another 2,000 units a day for the flagship Splendor motorcycle, ahead of the festive season. Hero has also doubled capacity for the Destini scooter and lifted Xoom output by 50%. Earlier reporting from Business Standard said the company has earmarked ₹1,500 crore for capital spending in fiscal 2026-27 to support scooter expansion and is also building a global parts centre in southern India.
Exports are another area of growth. Chitale said overseas sales rose by more than 60% in the first quarter and that the company sees room to keep expanding as it enters new markets, including Germany and Nepal. Hero is also developing two electric motorcycle platforms, one of them with US-based Zero Motorcycles, while continuing to work on flex-fuel versions across its portfolio. The company said its EV business is moving towards better profitability, with about 60% of the portfolio now eligible for production-linked incentive benefits and the loss per vehicle narrowing in the first quarter.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
