Hero MotoCorp to launch new nameplates under fast-growing 150-350cc motorcycle segment

Hero MotoCorp plans to introduce new motorcycles under both the Hero MotoCorp and Harley-Davidson brands in FY2026-27 as it looks to expand its presence in the 150-350cc premium motorcycle segment, according to the company's FY26 annual report.

The country's largest two-wheeler manufacturer said the premium motorcycle market continues to be reshaped by changing consumer preferences, with the 150-350cc category emerging as the fastest-growing segment.

"Hero MotoCorp has plans to launch new products under both the Hero MotoCorp and Harley-Davidson brands in FY2026-27 to expand its presence in the 150-350cc premium sweet spot," the company said.

GST changes reshape premium motorcycle competition

The company said that India's two-wheeler industry continued to witness structural shifts in FY26, led by premiumisation, scooterisation and electrification.

According to the company, the premium motorcycle segment grew 18 per cent year-on-year during the fiscal, outpacing the broader motorcycle market. It attributed the momentum in the sub-350cc category to the rationalisation of GST to 18 per cent, which lowered entry barriers for buyers and encouraged upgrades to higher-capacity motorcycles.

"Manufacturers are pivoting toward mid-capacity platforms, enhancing their line-ups with tech-heavy variants, and expanding their market footprint through dedicated sub-350cc motorcycles," the report said.

The shift towards sub-350cc motorcycles has prompted manufacturers to recalibrate their product strategies to benefit from India's revised GST framework.

Bajaj Auto recently introduced a new 350cc engine platform by downsizing its existing 399cc architecture to qualify for the 18 per cent GST slab applicable to motorcycles below 350cc. Under this strategy, Triumph has launched 350cc versions of its 400cc motorcycles, offering slightly lower power output but lower ex-showroom prices. KTM has also introduced 350cc variants of the 390 Duke and 390 Adventure.

The strategy also saw Bajaj retune the Pulsar NS400Z and Dominar 400 to 349.13cc, with the GST benefit helping reduce the Pulsar NS400Z's price by nearly ₹21,000. The move reflects the industry's increasing focus on the 150-350cc segment, where lower taxation and fresh product introductions are making premium motorcycles more accessible.

Hero MotoCorp noted that motorcycles above 350cc witnessed slower growth after the revised GST structure placed the category under a 40 per cent tax slab, compared with the earlier effective rate of 31 per cent.

While most manufacturers absorbed the higher tax burden to avoid increasing retail prices, the company said the segment remains sluggish compared with the 150-350cc category, where tax benefits and product launches continue to support demand.

Company posts record financial performance

Hero MotoCorp reported total sales of 6.5 million units across its domestic and international internal combustion engine (ICE) and electric vehicle portfolios in FY26, up 9.7 per cent from the previous year. The performance helped the company retain its position as the world's largest manufacturer of motorcycles and scooters for the 25th consecutive year.

Revenue rose 14.9 per cent to ₹46,830 crore, while EBITDA increased 17.1 per cent to ₹6,871 crore. Profit after tax grew 14.3 per cent to ₹5,268 crore.

The company said growth was led by scooters, premium motorcycles, electric vehicles and international business. Domestic ICE scooter wholesales increased 27 per cent year-on-year, VIDA wholesales grew 2.5 times over FY25, while Harley-Davidson wholesales were up 27 per cent.

Hero MotoCorp also highlighted supply-side challenges during the year, including shortages of heavy rare earth magnets following export restrictions in China, semiconductor supply constraints, higher raw material prices and fuel supply disruptions linked to geopolitical tensions.

Despite these headwinds, the company said it continues to invest in expanding its premium portfolio, strengthening its distribution network and building its premium brand positioning as consumer demand increasingly shifts towards higher-value motorcycles.