Hero MotoCorp Share: Can the Auto Giant Regain Market Share in EVs, Scooters and Exports?
The article outlines the market share status and outlook of the company, which is the world's largest manufacturer of motorcycles and scooters by volume, based in New Delhi, India.
With a market capitalization of Rs 1,08,020 crore, Hero MotoCorp Ltd’s share closed at Rs 5,412 per share, up by 2.11 percent from its previous close. The stock of the company gave no return over the last year .
Where Does Hero MotoCorp’s Market Share Stand?
Hero MotoCorp held a 29.0 percent share of the domestic ICE two-wheeler market in Q1 FY27, up 0.3 percent year on year. Its strongest position remains in the 100cc motorcycle segment, where it held an 85.8 percent market share, while its Deluxe 125cc segment share stood at 17.8 percent.
In scooters, Hero MotoCorp held a 6.9 percent ICE scooter market share, with 5.1 percent in 110 cc scooters and 8.4 percent in 125cc scooters. Both categories recorded a 2.1 percent and 2.0 percent year-on-year increase, respectively. Its premium motorcycle market share stood at 4.6 percent, remaining flat year on year.
The company’s VIDA EV business held a 10.9 percent market share, up 4.0 percent year on year. Meanwhile, its global business and exports accounted for a 6.8 percent market share. These figures show that while Hero continues to have a strong position in its core motorcycle segment, scooters, EVs and exports are becoming important areas for gaining additional market share.
What Is Hero MotoCorp’s Move to Regain Market Share?
Hero MotoCorp is focusing on scooters, EVs and commuter motorcycles to regain market share. In Q1 FY27, its overall wholesale market share increased by 230 basis points, while ICE scooter market share gained 2.3 percentage points. The company is also strengthening its core 100cc motorcycle segment, where it holds an 85.8 percent market share.
The company is rapidly scaling its EV business, with wholesale volumes rising 151 percent year on year and market share improving by more than 400 basis points over the past year. EV capacity has increased from 15,000 units per month to nearly 30,000 and is expected to reach 45,000 units per month by FY27 end. Exports are another growth area, with volumes rising more than 60 percent in Q1 FY27, while new premium models are also planned.
JPMorgan maintains an Overweight rating with a target price of Rs 6,845, citing an upside potential of 26.5 percent for re-rating if Hero MotoCorp sustains market share during the festive season and narrows its medium-term growth gap with peers.
Key rationale
Business reorganisation : Hero MotoCorp has reorganised its operations into four independent business units covering commuter motorcycles, premium, EVs and exports. The move is aimed at improving accountability and execution across each segment.
Market share recovery : Hero MotoCorp has been losing around 120 basis points of market share annually in recent years due to changes in category mix and share losses within segments. JPMorgan sees FY26 as an inflection point, with the company focusing on scooters, EVs and commuter motorcycles to regain share.
Festive demand : Wholesale and retail trends could differ in the near term as the festive season has been delayed by 2 to 3 weeks. This could temporarily affect how the company’s sales performance is reflected across the two channels.
Exports and EVs : Exports remain an important growth opportunity, with Hero MotoCorp targeting more than 1 million units by FY30 through a local-for-local strategy. In EVs, both VIDA and Ather are gaining market share, supporting the company’s focus on electrification.
Margin improvement : JPMorgan expects Hero MotoCorp’s margins to improve gradually as raw material inflation stabilises and earlier price increases start flowing through. This could provide support to profitability as the company continues investing in new growth segments.
Conclusion
Overall, Hero MotoCorp is showing early signs of market share recovery, with gains in scooters, EVs and its core motorcycle segments. With EV capacity expanding, exports growing strongly, and new premium models planned, the company is looking to build on these gains and address the market share losses seen in recent years.
About the Company
Hero MotoCorp Ltd is an Indian two-wheeler manufacturer headquartered in New Delhi. The company was established in 1984 as Hero Honda Motors Ltd through a collaboration between Hero Cycles and Honda. Following Honda’s exit from the partnership in 2011, the company was renamed Hero MotoCorp.
Financial Highlight: Revenue increased to Rs 13,126 crore in Q1 FY27 from Rs 9,728 crore in Q1 FY26, registering a 35 percent growth YoY. EBITDA rose to Rs 1,702 crore in Q1 FY27 from Rs 1,413 crore in Q1 FY26, up 20 percent YoY. Net profit declined to Rs 1,418 crore in Q1 FY27 from Rs 1,706 crore in Q1 FY26, down 17 percent YoY. EPS stood at Rs 70.59 in Q1 FY27 compared with Rs 85.26 in Q1 FY26, down 17 percent YoY.