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Informist, Friday, Aug. 7, 2026

 

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--Hero MotoCorp: Improved price realisation, pdt mix drove Q1 top line
--CONTEXT: Comments by mgmt of Hero MotoCorp in post-earnings analyst call
--Hero MotoCorp: Sold close to 5,000 units of our flex-fuel motorcycles
--Hero MotoCorp: Tripling capacity of electric vehicles FY27
--Hero MotoCorp: Saw higher sales of premium, electric 2-wheelers Q1
--Hero MotoCorp: Cost pressures weighed on co's gross margins Q1
--Hero MotoCorp: Have very low channel inventory for Vida EVs
--Hero MotoCorp: Added 2,500 per day addl capacity for scooter line-up
--Hero MotoCorp: Expect marginal uptick in input cost inflation Q2
--Hero MotoCorp: Cut prices of select 2-wheeler variants in Q1
--Hero MotoCorp: Introducing more pdts in newer intl markets
--Hero MotoCorp: Retail sales, enquiries of Vida scooters doubled in Q1
--Hero MotoCorp: Full EV portfolio will be eligible for PLI benefit this yr
--Hero MotoCorp: Plan to launch electric motorcycles next year onwards
--Hero MotoCorp: See 2-wheeler sales growing Oct-Mar despite high base
--Hero MotoCorp: Hiked petrol vehicle prices by 4.5% on avg since Feb-end

 

 

By Anand JC and Shruti Nair

 

MUMBAI – Hero MotoCorp Ltd. is gearing up to launch its electric motorcycles next year onwards with two distinct platforms in place catering to differing customer preferences, Kausalya Nandakumar, the chief business officer of the company's emerging mobility business unit told investors in a post-earnings conference call early Friday.

 

Hero MotoCorp operates in the electric two-wheeler segment under its electric mobility brand Vida. The company had previously unveiled two platforms on which it would build its electric motorcycles -- which would be distinct from the platform on which its electric scooters are built. Project UBEX caters to urban mobility requirements, for consumers seeking a city-friendly motorcycle but equipped with the "thrill and acceleration" of a motorcycle. The second platform, built under collaboration with the US' Zero Motorcycles, will be used to build a high performance motorcycle. 

 

"The motorcycle platform caters to the needs of a motorcycle consumer and therefore these are new platforms, that we are developing with learnings from the scooter platform, are (built) with technology that is suited to what a motorcycle consumer is actually looking for in terms of performance, rideability, credibility and range," Nandakumar said.

 

Despite electric scooters finding considerable favour among consumers, only a handful of companies have launched electric motorcycles in India so far. However, that is set to change soon as Delhi took the lead by stopping new registrations of petrol and compressed natural gas-fuelled motorcycles and scooters starting Apr. 1. This policy move has prompted the need for a bigger shift towards electric motorcycles. 

 

"We have seen great momentum in EVs in Delhi," a senior company official said. "Last month we saw doubling of our enquiries in EV, also saw near-doubling of our retails of EV...we have increased supplies to Delhi from our side," the official said. The company is working on boosting its dealerships, service networks, and infrastructure as the capital city prepares for a major powertrain overhaul.

 

EV BOOST
The wholesale revenues of Hero MotoCorp's two-wheelers grew 23% on year in the June quarter. Around 60% of Hero MotoCorp's electric portfolios is now eligible for state-offered production-linked incentives and the company expects its full portfolio to be PLI-certified by December.

 

"FY27 (financial year 2026-27 (Apr-Mar)) will be our first full year of PLI approvals, providing a strong structural tailwind to support EV portfolio. Moreover, some of our models have turned gross margin positive, which will further enhance our overall EV profitability going forward," the company said.

 

The company currently has extremely low channel inventory for its electric scooters. "It is 2-3 days (inventory) depending on region to region. So whatever we are supplying and shipping is actually retailed immediately," the company said, adding that this indicates a pent-up demand for its scooters. Including petrol-run two-wheelers, the company has added a manufacturing capacity of 2,500 units extra per day.

 

The first phase of capacity expansion of Vida scooters is already done, and the remainder will be completed in the March quarter. "We've also done the first leg of capacity expansion, which has already come on stream on 1st of August...These new launches as well as additional capacity will see a further boost to our EV sales going forward," a senior company official said.

 

 

INTERNATIONAL

Hero MotoCorp's revenue has been getting an additional boost from its global business. Sales of its petrol two-wheelers grew 21% in the June quarter, with domestic despatches rising 18% and international sales growing 63%. "There is a lot of headroom (to grow), considering where we are," the company said.

 

Hero MotoCorp is focusing on entering newer markets and introducing newer products. "We launched our ICE (internal combustion engine) vehicles in Germany, we have started selling our Vida (electric scooters) in Nepal," the company said.

 

"You will see more and more products, more and more geographies continue to get open and high growth trajectory that you saw in our exports over the last two years," the company said, adding that it has planned its capacity expansion with an eye on growing its global footprint. The company is tripling its capacity of electric vehicles this year.

 

Going forward, Hero MotoCorp expects sales of two-wheelers across the industry to grow in double-digits in FY27. The company expects sales to grow year-on-year in Oct-Mar, despite a high base which was created by the cut in goods and services tax in late 2025.

 

Hero MotoCorp forayed into the flex-fuel space in June as it launched variants of Splendour and HF Deluxe compliant with higher blends of ethanol with petrol. Despatches of these vehicles began in July, and the company has sold 5,000 units already. "It's seen a great traction and we are the only ones and we are differentiated in that category right now," the company said.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

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