Hero MotoCorp smashes sales records in FY25 as EV surge and global boom redefine two-wheeler dominance

Hero MotoCorp smashes sales records in FY25 as EV surge and global boom redefine two-wheeler dominance

Hero MotoCorp Limited, the world’s largest manufacturer of motorcycles and scooters, has cemented its industry dominance with an impressive performance in the financial year ending March 2025. The company reported total sales of 5,899,187 units for FY25, including both motorcycles and scooters, surpassing its FY24 performance and highlighting its aggressive push in electric vehicles and global expansion. This performance marks Hero MotoCorp’s 25th consecutive year of market leadership in India, underlining its enduring strength in one of the world’s most competitive two-wheeler markets.

Hero MotoCorp’s strategy for FY25 blended aggressive product innovation, strategic investment in electric mobility, international expansion, and a premium retail experience, creating a multifaceted growth story. In March 2025 alone, the company reported domestic sales of 510,086 units and exports of 39,518 units, contributing to the fiscal year’s overall success.

Why is Hero MotoCorp’s EV strategy crucial for its future?

Hero MotoCorp’s electric vehicle (EV) business has emerged as a transformative pillar of its growth strategy. The company’s electric brand, VIDA, saw its highest-ever annual performance with over 58,000 electric scooters dispatched in FY25, reflecting a nearly 200% year-on-year increase. The VIDA V2 electric scooter, launched to target India’s growing demand for affordable e-mobility, registered 7,787 units in March alone, signalling strong consumer response.

To support this growth, Hero MotoCorp established a vast network of over 3,600 VIDA fast-charging points across 250 cities and set up more than 500 service stations. This infrastructure is critical in building consumer confidence in the EV ecosystem, which remains a hurdle for many automakers. In the broader Indian EV landscape, where adoption is driven by urbanisation, government subsidies, and rising fuel costs, Hero MotoCorp’s aggressive investment in customer experience and charging infrastructure has put it in a leading position to benefit from the transition.

What role did global markets play in Hero MotoCorp’s FY25 growth?

Hero MotoCorp’s global operations experienced significant momentum in FY25, contributing to a 43% growth in international sales, reaching 287,429 units—up from 200,923 units in FY24. The month of March alone saw record global dispatches of 39,518 units, underscoring the company’s rising footprint outside India.

This growth came on the back of several strategic initiatives. Hero MotoCorp inaugurated a new assembly facility in Nepal in partnership with CG Motors, marking a deeper commitment to South Asian markets. Simultaneously, it began operations in the Philippines and laid the groundwork for expansion into the UK and other European markets by the second half of 2025. The company also established a wholly owned subsidiary in Brazil, a key Latin American market with strong two-wheeler demand.

This diversified approach to internationalisation not only reduces dependence on the Indian market but also aligns with the broader trend of Indian OEMs seeking resilience through global revenue streams.

How is Hero MotoCorp positioning itself in the premium segment?

While Hero MotoCorp continues to dominate the commuter and entry-level motorcycle segments, it has made substantial inroads into the premium motorcycle market, an area traditionally dominated by international brands. The Harley-Davidson X440, launched under the company’s extended collaboration with Harley-Davidson, sold over 11,000 units in FY25. This offering strengthens Hero MotoCorp’s presence in a lucrative but competitive space and has helped build a portfolio that spans across price points and customer personas.

To support this premium push, Hero MotoCorp established more than 80 “Premia” dealerships across India. These outlets house distinct sections for Hero, VIDA, and Harley-Davidson products, reflecting an evolving retail strategy that caters to aspirational consumers. The company’s Hero 2.0 retail network also grew to 930 outlets, further enhancing accessibility.

New product launches like the Hero Xtreme 160R 2V, the Dakar-inspired Xpulse 200 4V, and the limited-edition Mavrick 440 in collaboration with Thums Up contributed to the company’s brand refresh in the premium space.

What were the standout product and marketing initiatives?

FY25 saw Hero MotoCorp expanding its product lineup aggressively. In the commuter motorcycle space, it celebrated the 30th anniversary of the Splendor brand by launching the Splendor+ XTEC 2.0. It also refreshed the Hero Glamour with new features and styling. The company launched multiple scooters, including the new Destini 125, Xoom 125, and the combat-themed Xoom 160.

Marketing initiatives kept pace with product innovation. A festive campaign titled ‘Shubh Muhurat Aaya, Hero Saath Laya’ featured actors Divyendu Sharma and Hansika Motwani in a generative AI-powered campaign. Meanwhile, global cricket icon Virat Kohli fronted the Hero Xtreme Power brand campaign, reinforcing the company’s appeal among younger demographics.

These product and marketing moves reflect an intent to blend heritage with innovation, aiming to build relevance across consumer segments from daily commuters to performance-oriented youth.

How does Hero MotoCorp’s investment in Euler Motors support its electric ambitions?

Hero MotoCorp’s decision to invest up to ₹525 crore in Euler Motors signals its growing ambitions in the electric mobility space, beyond just two-wheelers. Euler Motors is a key player in the Indian electric three-wheeler market, which is rapidly expanding due to last-mile delivery demand and urban logistics needs.

By entering this segment, Hero MotoCorp aims to diversify its electric portfolio and capture a share of the commercial EV market, which offers high volume and strong regulatory tailwinds. This move also strengthens Hero MotoCorp’s credentials as a holistic electric mobility company rather than a two-wheeler-centric manufacturer.

How has Hero MotoCorp fared on sustainability and ESG benchmarks?

Hero MotoCorp has significantly enhanced its sustainability credentials, now ranking first among Indian two-wheeler companies on the Dow Jones Sustainability Index (DJSI) and fourth globally in the automotive industry. The company’s DJSI score rose from 51 to 69, reflecting measurable progress in environmental, social, and governance (ESG) metrics.

Its manufacturing facilities have earned several accolades, including the prestigious Sword of Honour from the British Safety Council for workplace safety excellence at its Gurugram plant. It was also certified as a Zero-Waste-to-Landfill (ZML) organisation and included in the FTSE4Good Index Series.

These recognitions are not only critical from a reputational standpoint but are increasingly important to global investors and markets that prioritise sustainability-linked disclosures and governance performance.

What do stock trends reveal about Hero MotoCorp’s market sentiment?

Hero MotoCorp’s stock performance reflects a cautiously optimistic market sentiment. As of April 2, 2025, shares of Hero MotoCorp (NSE: HEROMOTOCO) closed at ₹3,783.95, a 0.58% uptick from the previous day’s close. Over the past week, the stock has gained 2.59%, suggesting a short-term recovery following a period of underperformance. However, the stock has declined 10.09% over the past three months and is down nearly 20% compared to a year ago.

The stock currently trades at a price-to-earnings (P/E) ratio of 18.23, supported by earnings per share (EPS) of ₹207.61. Its six-month beta of 1.4077 signals higher-than-average volatility, often seen in stocks that are sensitive to market shifts or investor sentiment.

For existing investors, the outlook suggests a ‘Hold’ strategy may be prudent, especially in light of the company’s long-term growth plans in electric mobility and global expansion. Prospective investors may consider entering at more favourable valuations, but should be mindful of the recent volatility and competitive pressures in both the domestic and international markets.

What does FY25 indicate about Hero MotoCorp’s broader strategy?

Hero MotoCorp’s FY25 performance reflects a broader, integrated strategy designed to consolidate its core leadership while expanding aggressively in new-age segments. By investing in EV infrastructure, premium motorcycles, and global markets, the company has built growth pillars that transcend traditional product lines.

Its expanding role in ESG, community development, and future-facing collaborations — including its ONDC partnership and startup accelerator — indicates a company positioning itself not just as a two-wheeler manufacturer, but as a mobility solutions leader.

This forward-looking approach, combined with its operational scale and brand equity, suggests that Hero MotoCorp is setting itself up not only to lead India’s mobility transition but to become a globally relevant player in the evolving transportation ecosystem.