Hero MotoCorp bets on premiumisation, EVs to sustain growth momentum

Input costs are keeping the 2-wheeler maker down at a time it is increasing revenue and market share amid competition.

The company expects to maintain the margin stable for the December quarter despite persistent input cost inflation. It plans to offset the impact through cost rationalisation, better VIDA unit economics and calibrated price increase. It also retained the medium-term Ebitda margin guidance of 14-16%.

Premiumisation is another key growth driver. Hero plans to launch three-four premium motorcycles during the remainder of FY27, while continued traction in the Harley-Davidson portfolio, strong demand for the Xpulse range and expansion of the Premia network created specifically to sell and service its high-end vehicles, are expected to improve product mix and support earnings growth. Exports, which faced temporary disruptions in markets such as Colombia and Bangladesh, are also expected to recover. Hero expects export volume to return to double-digit growth in the second half of FY27 as logistical challenges ease.