Hero MotoCorp Bets on Entry-Level, 125CC Bikes to Drive Retail Sales Growth
Hero MotoCorp, India’s largest two-wheeler manufacturer, has reported strong growth in retail sales driven by its focus on entry-level and 125CC motorcycle segments. The company now commands a dominant 65% market share in these segments on the Vahan platform, which tracks vehicle registrations in India. This growth is being attributed to product interventions, process improvements, and a strategic push to capture a larger share of the growing entry-level motorcycle market.
Highlights:
Hero MotoCorp’s market share in entry-level and 125CC segments reaches 65% on Vahan platform
Focus on product interventions and process improvements driving retail sales growth
Entry-level bikes and 125CC motorcycles expected to remain key growth drivers
Hero MotoCorp’s FY25 Performance: Record Revenue and Profits
For the financial year 2025 (FY25), Hero MotoCorp reported its highest-ever revenue and profits. The company sold a total of 58.99 lakh two-wheelers, marking a 5% increase compared to the 56.21 lakh units sold in FY24. This performance was driven by a combination of retail sales growth, strong market presence in entry-level bikes, and product innovations. The company has also placed significant emphasis on premium and scooter segments to bolster its overall market performance.
Highlights:
Hero MotoCorp sold 58.99 lakh two-wheelers in FY25, up 5% from FY24
Strong performance in entry-level bikes, premium motorcycles, and scooter segments
Increased focus on premiumization through new high-end model launches
Premiumization Strategy and Product Launches
As part of its premiumization strategy, Hero MotoCorp launched several new high-end models during FY25, including the Xtreme 250R, Xpulse 210, and the updated 2024 edition of the Xtreme 160R 2V. In the scooter segment, the company introduced models like the new Destini 125, Xoom 125, and Xoom 160, expanding its presence in the competitive market. These new launches aim to capture the growing demand for premium products and boost market share, both in India and abroad.
Highlights:
New high-end models launched: Xtreme 250R, Xpulse 210, Xtreme 160R 2V
Scooter segment boosted by new Destini 125, Xoom 125, and Xoom 160 launches
Premiumization strategy key to expanding market share in both domestic and international markets
Global Business Performance and EV Market Share Expansion
Hero MotoCorp also saw strong performance from its global business, with the company achieving a five percent market share in international markets by the end of FY25. In the electric vehicle (EV) segment, Hero MotoCorp reported holding a 20% market share across 60 towns. The company has continued to outperform industry growth, with 40% of its export sales attributed to premium products. The company’s strategy of expanding its network, introducing new products, and building its brand presence has been crucial to this global success.
Highlights:
Hero MotoCorp achieves 5% market share in global business
20% market share in EV segment, with 60 towns already covered
40% of exports from premium products
Expansion of network and product offerings key to international success
Q4 FY25 Results: Strong Profit Growth
In the fourth quarter of FY25, Hero MotoCorp reported a consolidated net profit of ₹1,169 crore, reflecting a 24% year-on-year (YoY) increase from ₹943.46 crore in Q4 FY24. This growth was driven by an improved product mix, strong parts revenue, and cost-effectiveness in operations. The company’s consolidated revenue from operations for the quarter grew by approximately 4% YoY, reaching ₹9,970 crore compared to ₹9,617 crore in the same quarter of FY24.
Highlights:
Q4 FY25 net profit rises 24% YoY to ₹1,169 crore
Revenue from operations grows by 4% YoY to ₹9,970 crore
Improved product mix and cost-effectiveness contributing to strong profit growth
Full-Year FY25 Financial Performance: Revenue and Profit Growth
For FY25, Hero MotoCorp reported a consolidated net profit of ₹4,376 crore, representing a 17% growth from ₹3,742 crore in FY24. Consolidated revenue from operations also saw an 8.29% increase, rising to ₹40,923.42 crore from ₹37,788.62 crore in FY24. This growth reflects Hero MotoCorp’s consistent market dominance in the entry-level and 125CC motorcycle segments, along with its premiumization efforts and robust export performance.
Highlights:
FY25 net profit rises by 17% YoY to ₹4,376 crore
Revenue from operations grows 8.29% YoY to ₹40,923.42 crore
Strong market share in domestic and international markets drives financial growth
