Hero MotoCorp expects growth in India’s two-wheeler industry to reach moderate to high single digits in FY2027 after a strong double-digit expansion last year, with scooters likely to continue outpacing motorcycles.
- Scooter segment expected to grow faster than motorcycles
- Hero to invest over Rs 1,500 crore in FY2027
- EV and scooter manufacturing capacities being expanded
Hero MotoCorp FY2027 outlook explained
Hero plans aggressive product push and scooter capacity expansion
Speaking during its post-earnings call, Hero MotoCorp management said industry growth in FY2027 is expected to remain in the high single digits, driven by both motorcycles and scooters, although scooters are expected to grow a few percentage points faster.
India’s two-wheeler industry recorded strong growth in FY2026, with volumes rising 26.4 percent year-on-year to 21.71 million units. Motorcycle sales grew 6.6 percent to 13.06 million units, while scooter volumes rose 18.5 percent to 8.12 million units.
Hero MotoCorp said retail demand trends have remained stable through April and early May despite concerns around inflation and geopolitical tensions in West Asia. According to the company, there has been no significant impact on volumes so far, largely because fuel prices have remained stable.
The company added that urbanisation, growth of e-commerce and the expanding gig economy continue to support long-term demand for two-wheelers in India.
Hero MotoCorp also said it aims to outperform the broader market in FY2027 with multiple product launches and updates planned across internal combustion and electric vehicle segments. Last year, the company launched nine new products and several refreshes across motorcycles and scooters.
The company retained its position as India’s largest two-wheeler manufacturer in FY2026, although competition in the scooter segment has intensified with rivals such as TVS Motor Company and Suzuki Motorcycle India gaining market share.
To support future growth, Hero MotoCorp plans to invest more than Rs 1,500 crore in FY2027. The investment will primarily go towards expanding manufacturing capacity for electric vehicles and scooters, along with preparations for upcoming product launches.
The company has already increased production capacity of the Destini scooter by 50 percent and is in the process of doubling production capacity for the Xoom range. Hero MotoCorp also said its EV manufacturing capacity is set to rise by 50 percent over the previous quarter within the next month, with plans to double capacity by the end of the year.
With inputs from Arushi Bhatia