Hero MotoCorp to Launch New Premium Motorcycles to Drive Growth: Report

Hero MotoCorp is stepping up its focus on India's rapidly expanding premium motorcycle segment, with plans to introduce new products, widen its premium retail footprint and strengthen its presence in overseas markets as customer demand increasingly shifts towards higher-capacity motorcycles, Autocar Professional reported.

In its latest annual report, the country's largest two-wheeler manufacturer said premiumisation remained a defining trend in the domestic motorcycle market during the previous financial year. The premium segment recorded 18 per cent year-on-year growth, outpacing the broader industry as buyers continued to gravitate towards larger, feature-rich motorcycles and scooters.

The firm said the 150-350cc category has emerged as the industry's "sweet spot", helped by changes to the GST structure that have lowered the entry barrier for first-time premium motorcycle buyers while encouraging existing customers to upgrade.

By comparison, the above-350cc motorcycle segment has witnessed relatively slower growth following higher tax rates, although manufacturers have largely absorbed the additional costs to keep pricing competitive.

To capitalise on the growing demand, Hero MotoCorp plans to introduce new motorcycles under both the Hero MotoCorp and Harley-Davidson brands during FY27, further strengthening its presence in the 150-350cc category.

The company has already expanded its premium line-up with models including the Xtreme 250R, Xpulse 210 and Karizma XMR, while the Harley-Davidson X440 continued to gain momentum during the year.

The premiumisation strategy has also contributed to stronger financial performance. 

Hero MotoCorp reported an EBITDA margin of 14.7 per cent during the year, supported by a favourable product mix, higher premium model sales, cost optimisation and operational efficiencies.

Beyond the domestic market, the company is positioning premium motorcycles at the centre of its international growth strategy. Hero MotoCorp said its expansion across the UK and European Union is being driven by a Euro 5+ compliant product portfolio.

As part of this strategy, the company entered Italy, Spain and France with models including the Hunk 440, Xpulse 200 4V and Xpulse Pro, strengthening its presence in key global markets.

Supporting future product development is Hero MotoCorp's Hero Tech Center in Munich, Germany, which is focused on advanced powertrains and next-generation technologies for premium motorcycles. The facility complements the company's Centre for Innovation and Technology in Jaipur, forming the core of its global research and development network.

The company is also investing in enhancing the customer experience through its premium retail network. During the financial year, Hero MotoCorp added 50 Hero Premia outlets, taking the total to 130 stores across 115 cities. It also upgraded 490 dealerships to its technology-enabled Hero 2.0 format, aimed at offering a more contemporary retail experience while expanding the brand's premium reach in urban markets.