Hero MotoCorp to expand premium motorcycle portfolio in FY27

Hero MotoCorp is sharpening its focus on India's premium motorcycle market, with new product launches planned under both the Hero MotoCorp and Harley-Davidson brands in FY27, targeting the 150-350cc segment. The strategy is outlined in the company's annual report, which also details retail expansion, improved margins and growing international ambitions.

1. New motorcycles planned under both Hero MotoCorp and Harley-Davidson brands in FY27
2. Premium segment grew 18 percent year-on-year in FY26, outpacing the broader industry
3. Hero Premia retail network now at 130 outlets across 115 cities

Hero MotoCorp strategy details

Sub-350cc segment is the industry's sweet spot, says Hero

The premium two-wheeler segment grew 18 percent year-on-year in FY26, significantly outpacing the broader market. Hero MotoCorp attributes this to a structural shift in consumer preference toward higher displacement, feature-rich products since the pandemic, aided by rising incomes. The company also credits changes to the GST structure with widening access to the premium segment for first-time buyers and encouraging existing customers to upgrade. Motorcycles above 350cc have seen slower growth following higher tax rates, though manufacturers have largely absorbed the additional costs to keep prices stable.

Hero MotoCorp's existing premium portfolio – which includes the Xtreme 250R, Xpulse 210, Karizma XMR and the Harley-Davidson X440 – has been steadily expanding, and further additions are planned for FY27. The premium mix shift has also contributed to profitability, with the company's EBITDA margin improving to 14.7 percent in FY26 on the back of a more favourable product mix alongside cost optimisation and operational efficiencies.

The brand’s global ambitions are also centred on its premium range. The company has entered Italy, Spain and France with products including the Hunk 440, Xpulse 200 4V and Xpulse Pro –  all Euro 5+ compliant – positioning premium motorcycles as the anchor for its European push. Supporting this is the Hero Tech Center in Munich, which focuses on developing advanced powertrains and technologies for premium products, alongside the company's Centre for Innovation and Technology in Jaipur.

On the retail front, Hero MotoCorp added 50 Hero Premia outlets during FY26, taking the network to 130 stores across 115 cities, while also upgrading 490 dealerships to its Hero 2.0 technology-enabled format. The company expects momentum in the sub-350cc segment to continue and sees it as a key growth opportunity in the coming years.