Hero MotoCorp Ltd, India’s leading two-wheeler manufacturer, is forecasting double-digit revenue growth for both the current financial year 2025 and the following one, despite challenges in market share. “Based on our performance over the first nine months and the positive start to this quarter, we are confident of achieving double-digit revenue growth this year and expect a similar trend next year,” the company’s management told investors on Friday.
For the first nine months of FY25, Hero MotoCorp recorded a 10% year-on-year increase in revenue, reaching Rs 30,818 crore. This growth was driven by higher volumes and a favorable product mix. In FY24, the company had reported Rs 37,456 crore in revenue, marking an 11% growth.
The management highlighted an uptick in rural demand during the third quarter, with a nearly 3% increase in contribution during the festive season. The company anticipates this trend will continue, bolstered by government initiatives aimed at boosting rural market sentiment.
According to SIAM data, domestic two-wheeler sales grew by 14.5% in the first nine months of FY25, reaching 1.95 crore units, while exports saw a 22.6% increase to 39.77 lakh units. However, Hero MotoCorp’s domestic market share dropped to 28.8% during the April-December period, down from 30.4% the previous year. The Federation of Automobile Dealers Associations also reported a decline in market share to 29% in 2024, compared to 31.3% in 2023.
CFO Vivek Anand expressed optimism about the sector’s growth, citing strong demand and a recovery in the broader two-wheeler market. He emphasized the ramp-up of the 125cc portfolio, new product launches, and investments in building strong brands as key drivers for growth.
Outgoing CEO Niranjan Gupta noted that the company has consistently generated over Rs 10,000 crore in quarterly revenue, with 95% of the portfolio recovering market share. He also pointed out the company’s strong retail share, which exceeds dispatch market share, and the enhanced portfolio through multiple new launches.
“We’ve made significant strides in the 125cc segment, increasing our market share from 13% in Q4 of FY24 to over 20%,” Gupta said. “Our premium portfolio is stronger, and our EV strategy is gaining momentum, especially with the Vida Z model, which will also be launched in the UK and Europe in late 2025.”
Hero MotoCorp is also focused on expanding its presence in the electric vehicle (EV) market, with plans to increase its share in the segment, where it currently holds a mid-single-digit share. The company aims to build on the success of the Vida brand, which is priced below Rs 1 lakh.
Despite fluctuations in the global economy, Hero MotoCorp sees significant potential in its global business and the electric mobility sector, viewing it as a key growth driver for the future. Exports accounted for 3.9% of the company’s Rs 37,456 crore revenue in FY24, and the company operates in 48 countries.
In February, the company reorganized its electric vehicle and Emerging Mobility Business Unit (EMBU) into a fully independent division to accelerate innovation and product development in the EV space. Hero MotoCorp will see leadership changes in April, as CEO Niranjan Gupta and Chief Business Officer Ranjivjit Singh are set to step down. Swadesh Srivastava currently leads the EMBU division.
