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Shares of Hero MotoCorp gained over 2% in early trading today as strong quarterly performance, growing rural demand, and electric vehicle (EV) expansion plans lifted investor sentiment.
The company, which remains India’s largest two-wheeler manufacturer, is aiming to outpace the industry’s expected 6–7% growth rate in FY26. This optimism is rooted in improved market dynamics, particularly in rural areas, a revival in the entry-level segment, and renewed consumer interest in the 125cc motorcycle range.
FY25 Performance Overview
Hero MotoCorp sold 5.9 million units in FY25, up 5% from 5.62 million units in FY24. Its Q4 results were particularly encouraging, with a 600 basis point gain in the entry-level segment and 250 basis point improvement in the 125cc category — both segments vital to rural market success.
Executives highlighted increased demand during the recent marriage season and reported consistent traction across both core and premium motorcycle offerings. The company aims to further increase its retail market share, focusing primarily on entry and mid-level bikes.
EV Strategy Gains Traction
Hero’s EV arm, Vida, is set to launch two new electric scooters in July 2025 to strengthen its foothold in the electric two-wheeler market. The company sold 58,503 electric units in FY25 and now targets monthly volumes of 25,000–30,000 units in the coming years, with breakeven goals in sight.
Current Vida models include the V2 Pro, V2 Plus, and V2 Lite, with prices ranging from Rs 74,000 to Rs 1.15 lakh (ex-showroom). Hero has also filed for PLI approval for the Vida Pro and expects clearance by July.
Other Business Highlights
Hero’s spare parts segment continued to perform steadily, with revenue rising 15% year-on-year to Rs 1,553 crore in Q4. Net profit for Q4 FY25 stood at Rs 1,081 crore, reflecting a 6% increase from Rs 1,016 crore in the same quarter last year.
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