Hero MotoCorp achieves Q3 FY’25 revenue of Rs 10,211cr amid strong EV and global sales

Hero MotoCorp Limited, the world’s largest manufacturer of motorcycles and scooters, has reported its highest-ever revenue and profit for the third quarter (Q3) of the fiscal year 2024-25. The company posted a revenue of Rs. 10,211 crore for the quarter ended December 31, 2024, reflecting a solid 5% year-on-year growth. This marks the third consecutive quarter where revenue surpassed the Rs. 10,000 crore mark, underscoring the company’s consistent financial performance and strategic market positioning.

With a 12% surge in profit after tax (PAT) to Rs. 1,203 crore, Hero MotoCorp has demonstrated resilience amidst dynamic market conditions, supported by robust sales in both domestic and international markets. The company’s diversified product portfolio, aggressive expansion into electric vehicles (EVs), and strong global presence have been pivotal in driving growth.

What Drove Hero MotoCorp’s Record Revenue Growth in Q3 FY’25?

Hero MotoCorp’s Q3 FY’25 performance was primarily driven by strong domestic demand, record festive season sales, and the company’s expanding footprint in the electric vehicle segment. The company sold 14.64 lakh units of motorcycles and scooters during the quarter, marginally higher than the 14.60 lakh units sold in the same period last year.

For the nine months ending December 2024, Hero MotoCorp achieved a revenue of Rs. 30,818 crore, marking a 10% growth compared to the previous fiscal period. PAT for the same period rose by an impressive 20%, reaching Rs. 3,529 crore. This growth trajectory is attributed to the company’s effective product strategies, operational efficiencies, and market share gains in key segments.

One of the standout contributors to this growth has been the performance of the Splendor in the 100cc segment and the Xtreme 125R and Super Splendor in the 125cc segment. These models have solidified Hero MotoCorp’s leadership position in the commuter motorcycle market.

How Is Hero MotoCorp’s Electric Vehicle Strategy Shaping Its Future?

Hero MotoCorp’s aggressive push into the electric vehicle (EV) market through its brand VIDA has been a significant growth catalyst. The company reported its highest-ever monthly EV sales during the quarter, supported by strong festive demand. The launch of the new VIDA V2 range of electric scooters has allowed Hero MotoCorp to enter the mass-market segment, expanding its EV customer base.

The company’s EV strategy is not limited to domestic markets. Hero MotoCorp’s global business has outpaced industry growth, with Bangladesh and Colombia emerging as key markets. This international expansion highlights the company’s ability to adapt to diverse market dynamics while capitalising on the growing global demand for sustainable mobility solutions.

According to Vivek Anand, Chief Financial Officer of Hero MotoCorp, the strong EV sales reflect the company’s commitment to innovation and sustainability. “Our performance this fiscal year showcases the successful execution of strategic priorities, with significant growth in both traditional and electric segments,” Anand said.

What Role Did Product Innovation Play in Hero MotoCorp’s Success?

Product innovation has been central to Hero MotoCorp’s growth strategy. The company launched four new products at Bharat Mobility 2025, strengthening its presence in the premium motorcycle and scooter segments. Deliveries for these models are expected to begin in March 2025, potentially boosting revenue in the upcoming quarters.

Hero MotoCorp also showcased new models at EICMA 2024, including the Xpulse 210, Xtreme 250R, and Karizma XMR 250, alongside the environmentally conscious VIDA Z electric scooter. These launches reflect Hero MotoCorp’s focus on catering to evolving consumer preferences, particularly in the premium and performance segments.

Additionally, the company has extended its strategic partnership with Harley-Davidson to develop new motorcycle variants. This collaboration is expected to enhance Hero MotoCorp’s brand equity and product portfolio in the premium motorcycle market.

How Is Hero MotoCorp Investing in Sustainability and Renewable Energy?

Hero MotoCorp’s commitment to sustainability extends beyond its EV offerings. The company announced an investment of Rs. 5.15 crore in a solar power wheeling project for its manufacturing plants in Dharuhera and Gurugram. This project, developed under the Group Captive mechanism, aligns with Hero MotoCorp’s broader goal of increasing its renewable energy footprint.

Further emphasising its dedication to sustainable practices, Hero MotoCorp’s Gurugram manufacturing facility received the prestigious Sword of Honour from the British Safety Council, recognising excellence in health, safety, and environmental management.

What’s Next for Hero MotoCorp?

Looking ahead, Hero MotoCorp remains optimistic about its growth prospects. The company expects to benefit from the Union Budget 2025, which includes measures such as tax relief for the middle class, increased infrastructure spending, and support for the agricultural sector. These initiatives are anticipated to boost consumer confidence and drive demand growth in the automotive industry.

Hero MotoCorp’s strategic focus will remain on product innovation, expanding EV offerings, and strengthening global operations. As the company continues to adapt to changing market dynamics, it is well-positioned to maintain its leadership in the two-wheeler industry.