Two-wheeler giant Hero MotoCorp is preparing to expand its scooter lineup and solidify its standing in the 125cc motorcycle segment, aiming to outpace competitors, according to CEO Niranjan Gupta. The company is planning to introduce new models in both petrol and electric scooter categories, while also increasing the production capacity of its popular Xtreme 125R bike to meet growing demand.
“We are set to make significant moves in the scooter market, both in the internal combustion engine (ICE) and electric vehicle (EV) segments. The new Destini model will soon be launched with a full-body redesign, followed by the introduction of the Xoom models in 125cc and 160cc variants within this fiscal year,” Gupta said during a call with analysts.
In the EV segment, Hero MotoCorp plans to expand its portfolio to include mid-range and affordable options within the current financial year, Gupta added. The company has experienced a notable recovery in several motorcycle segments, particularly the 125cc category, during the June quarter.
“We have maintained a strong market share in the 100cc and 110cc segments with brands like Splendor and Passion,” Gupta noted. He further highlighted that Hero MotoCorp’s market share in the 125cc segment grew from 13% in Q4 FY24 to 20% in Q1 FY25. The Glamour and Super Splendor models have gained market share, while the Xtreme 125R has attracted new customers to the brand.
“We are ramping up production for the Xtreme 125R, which has already increased to around 25,000 units per month. We plan to further boost this to nearly 40,000 units monthly in the coming months due to the strong positive response,” Gupta said.
Despite facing intense competition in the 125cc segment, the company is confident in its ability to expand its market presence. Looking ahead, Hero MotoCorp CFO Vivek Anand said, “We plan to consistently grow volumes to improve operating leverage, aggressively expand our premium portfolio, continue double-digit growth in our Parts, Accessories, and Merchandise (PAM) business, and intensify cost-saving initiatives across the value chain.”
Anand expressed optimism about the growth potential of the domestic two-wheeler market, noting that with the expected faster recovery in rural areas, the ramp-up of the 125cc portfolio, and strong investment in brand building, Hero MotoCorp anticipates outpacing industry growth.
