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Hero MotoCorp bets on premiumisation, EVs to sustain growth momentum

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In short

Hero MotoCorp plans to counter ongoing cost pressures through measured price hikes, expense controls, and better unit economics within its VIDA electric vehicle brand. The automaker is also preparing to introduce three to four premium motorcycles across the remainder of FY27 to bolster its product mix. Further support will come from an expected rebound in overseas shipments following temporary disruptions in key international markets like Bangladesh and Colombia.

Key points

  • Expanding the dedicated Premia network will support sales and servicing for high-end vehi…: Expanding the dedicated Premia network will support sales and servicing for high-end vehicle models.
  • Growth in the Harley-Davidson portfolio and Xpulse range is expected to enhance the overa…: Growth in the Harley-Davidson portfolio and Xpulse range is expected to enhance the overall product mix.
  • Improving unit economics for the VIDA brand remains central to offsetting persistent inpu…: Improving unit economics for the VIDA brand remains central to offsetting persistent input cost inflation.

Sources checked by our analysis pipeline: 1

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The company expects to maintain the margin stable for the December quarter despite persistent input cost inflation. It plans to offset the impact through cost rationalisation, better VIDA unit economics and calibrated price increase. It also retained the medium-term Ebitda margin guidance of 14-16%.

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Premiumisation is another key growth driver. Hero plans to launch three-four premium motorcycles during the remainder of FY27, while continued traction in the Harley-Davidson portfolio, strong demand for the Xpulse range and expansion of the Premia network created specifically to sell and service its high-end vehicles, are expected to improve product mix and support earnings growth. Exports, which faced temporary disruptions in markets such as Colombia and Bangladesh, are also expected to recover. Hero expects export volume to return to double-digit growth in the second half of FY27 as logistical challenges ease.

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