Management Discussion and Analysis Report
Economic Environment
Global
The global economy demonstrated remarkable resilience throughout CY2024, navigating a complex landscape with steady footing. Inflation continued its descent toward central bank targets, supported by stable growth across major economies. Labour markets softened marginally, yet unemployment levels remained historically low, underscoring economic robustness. Real household incomes saw improvement, buoyed by strong nominal wage growth and easing inflationary pressures. However, private consumption growth remained tepid across several regions, held back by persistently low consumer confidence. Despite the fading effects of recent economic shocks, the pace of recovery remained measured.
Overall, global growth in 2024 was steady, though modest, sustaining a robust annualised expansion exceeding 3%. However, Geopolitical uncertainty may cast shadow on the growth prospects for CY2025, with IMF forecasting global GDP to increase by 2.8% vs. 3.3% in CY2024.
Furthermore, global growth patterns in 2024 have been uneven. The US economy outperformed expectations with a robust 2.8% growth, while the Eurozone remained sluggish at 0.9%. Chinas momentum eased to 5%, impacted by weak consumption and a persistent property sector downturn. India stood out as a bright spot, maintaining its strong trajectory with an impressive growth of 6.5%.
Global Output (GDP) Trend (%)
| 2024 | 2025 (P) | 2026 (P) | |
Global Output |
3.3 | 2.8 | 3 |
Advanced Economies |
1.8 | 1.4 | 1.5 |
United States |
2.8 | 1.8 | 1.7 |
Euro Area |
0.9 | 0.8 | 1.2 |
UK |
1.1 | 1.1 | 1.4 |
Emerging Markets |
4.3 | 3.7 | 3.9 |
China |
5.0 | 4.0 | 4.0 |
Russia |
4.1 | 1.5 | 0.9 |
Middle East & Central Asia |
2.4 | 3.0 | 3.5 |
Sub-Saharan Africa |
4.0 | 3.8 | 4.2 |
India |
6.5 | 6.2 | 6.3 |
Source: IMF WEO Apr-25 : P: Projection
Global Trade Growth: The Detrimental Impact of Further Trade Fragmentation on Global Growth Prospects
Global trade witnessed a strong recovery in 2024, expanding by 3.4%, a sharp improvement from the modest 0.9% growth recorded in 2023. This rebound was primarily driven by a 2.4% rise in merchandise trade volumes, reversing the previous years 1.0% contraction.
Easing inflation and stronger export momentum- particularly from the United States and key Asian economies such as China-had played a pivotal role until now. However, trade was temporarily disrupted by tensions in the Red Sea, which led to rerouting of shipments and elevated logistics costs, especially during the first half of the year. Conditions began to stabilise in the latter half, restoring trade flows gradually.
However, in CY2025, the prevailing high degree of geopolitical and policy uncertainty introduces substantial risks to baseline global trade projections. One salient risk is the escalation of trade restrictive measures. An illustrative exercise conducted by the Organisation for Economic Co-operation and Development (OECD), wherein bilateral tariffs are further elevated on all non-commodity imports into the United States with corresponding increases in tariffs applied to non-commodity imports from the United States in all other countries, indicates a potential contraction of global output by approximately 0.3% by the third year. Furthermore, global inflation could experience an average annual increase of 0.4% over the initial three years. The impact of these exogenous shocks would be amplified by a further increase in policy uncertainty or widespread risk repricing in financial markets. These factors would exacerbate downward pressures on corporate and household expenditure globally. Notwithstanding, the US Trump 2.0 administration has started negotiating for the newer terms of trade with various nations. Going forward, one would hope that it provides increased clarity and certainty.
Moderating Inflation
Global headline inflation continued its downward trajectory in CY24, easing from 5.6% in 2023 to an estimated 4.0%.
This moderation was supported by both demand- and supply- side factors, including easing labour market pressures and softer international prices for food, energy, and commodities.
In advanced economies, inflation is expected to revert towards central bank targets, creating room for potential monetary policy easing. While developing economies are also expected to see further declines, inflation in some regions remains elevated-above long-term averages; and in certain countries, still in double digits.
Looking ahead to the 2025-2026 period, inflation is projected to remain higher than earlier estimates, although continuing on a moderating trend aligned with a broader softening of economic growth. Within G20 economies, headline inflation is expected to be around 3.8% in 2025 and 3.2% in 2026. However, underlying inflation is likely to stay above central banktargets in many countries through 2026. Upside risks persist, including geopolitical tensions that could drive up energy prices, rising trade restrictions among major economies, and climate- related shocks that may disrupt agricultural output and add to food price volatility. The recent skirmishes in the Middle East may add an additional layer of uncertainty on this front.
In the near term, the monetary authorities may remain more cautious with regards to their rate cutting cycle.
Commodity Markets
The overall commodity price outlook for 2025 suggests a marginal downturn, with energy prices anticipated to decline, agricultural prices expected to ease, and metal prices projected to remain stable or experience a slight increase. However, upside risks persist, primarily driven by geopolitical tensions. Recent concerns regarding economic deceleration have already precipitated a decline in Brent crude prices. Conversely, certain safe haven assets, such as gold, have been trading near record high levels.
This trend may persist in the short term. Policy uncertainty exhibited by the Trump administration seems to have further triggered the investors to consider alternate avenues; besides the US treasuries and Dollar, to safely hold and store their financial wealth.
Outlook
GDP growth is expected to moderate in 2025 and 2026, with elevated trade barriers in several G20 economies and heightened policy uncertainty exerting downward pressure on investment and household spending. Annual real GDP growth in the USA is projected to decelerate from its recent robust pace.
Real GDP growth within the Euro Area continues to be subject to uncertainty. Nevertheless, increased expenditure by major European economies, such as Germany, in response to the evolving global order, may bolster its medium-to-longer term growth prospects. The Chinese economy continues to be subjected to internal and external vulnerabilities. Internal consumption seems yet to fire. Additionally, its export growth may remain sombre even after trade agreements have been reached with the US.
Notwithstanding these factors, monetary authorities will need to maintain vigilance, with fiscal measures requiring adherence to debt sustainability. Furthermore, all economies will necessitate cohesive and decisive structural policy reforms to fortify the foundations for sustained long-term growth especially at a time when geopolitical uncertainty seems to be order of the day.
Indian Economy
Amidst global headwinds marked by geopolitical tensions and trade disruptions, the Indian economy demonstrated robust resilience in FY 2024-25, registering a real GDP growth of 6.5%. Although this marked a moderation from the 8.2% expansion seen in the previous year, it aligned with the decadal average, underscoring Indias stable growth trajectory. The performance was underpinned by a revival in rural demand, resilient service sector activity, and sustained public investment in infrastructure.
Sectoral trends revealed mixed dynamics. The agriculture sector reported a strong recovery, with real GVA expanding by 5.6%, bolstered by an above-average southwest monsoon, which exceeded its long-period average by 7.6%. Kharif food grain production grew by 5.7%, while rabi acreage surpassed the long-term average by 4%. In contrast, the manufacturing sector experienced a slowdown to 3.5%, following a high base of 14% in the prior year. Corporate results suggest signs of a gradual recovery, supported by improving mining and electricity output and positive business sentiment as reflected in the PMI manufacturing index. The services sector remained resilient, expanding by 6.7%, supported by continued strength in the services exports.
Retail inflation moderated significantly, with headline Consumer Price Index (CPI) inflation slipping to 3.16%,-the lowest since July 2019. This was driven largely by easing food prices and lower non-core inflation. While food inflation spiked briefly in October 2024 to 10.9%, favourable rainfall, improved kharif arrivals, and healthy FCI stock helped stabilise prices. With seasonal vegetable price corrections and promising rabi prospects, food inflation is expected to remain contained. These trends enabled the Monetary Policy Committee (MPC) to initiate a rate-cutting cycle, reducing the repo rate by 25 bps in both February and April 2025. Further, the MPC f rontloaded a surprise 50 bps rare cut considering the evolving macro-economic circumstances. The Cash Reserve Ratio (CRR) was also slashed by 50 bps to inject additional liquidity into the banking system. The MPC maintained a neutral stance, supporting growth while continuing to monitor inflation dynamics.
Digitalisation has emerged as a key growth lever for the Indian economy. With India now ranking as the third-largest digital economy globally, and 12th among G20 nations in individual digital adoption, the digital sector contributed 11.74% to Indias GDP in FY 2022-23 ( Rs. 31.64 lakh crore or $ 402 billion). Employing 14.67 million people, the sector boasts productivity levels nearly five times higher than the broader economy. Fuelled by advancements in Al, cloud services, and the proliferation of global capability centres (GCCs) India hosts 55% of global GCCs. The digital economy is poised to grow at nearly twice the pace of overall GDP and is projected to contribute nearly one-fifth of national income by 2030.
The Union Budget for FY 2025-26 signalled a strategic pivot towards fiscal consolidation and consumption-led growth.
The government targeted a reduction in the fiscal deficit by 40 bps to 4.4% of GDP, drawing praise from global investors. While capital expenditure has risen steadily from 1.7% of GDP in FY 2013-14 to 3.1% in FY 2024-25, the government now anticipates greater private sector participation to sustain infrastructure investments. A key consumption-boosting measure included raising the tax-free income threshold under the new regime from Rs. 7 lakh to Rs. 12 lakh. With Indias per capita GDP at Rs. 2,35,108, this change is expected to benefit a broader section of the population, triggering a multiplier effect on consumption.
Outlook
The World Bank also explicitly expressed its confidence in the Indian growth narrative and has encouraged global investment to invest in the country. World Bank Country Director Auguste Tano Kouame stated that the lender remains optimistic and bullish regarding Indias economic prospects, despite a marginal downward trend in growth.
Fie emphasised that fluctuations of one percentage point in economic growth do not alter the World Banks positive outlook. Moreover, it has been noted that despite global uncertainties, India is well-positioned to benefit should a recession materialise in the developed economies. Indias growth trajectory has often been independent of the US economy, and historical precedents indicate that India has typically recovered ahead of the US during economic slowdowns.
A global slowdown could also lead to lower commodity prices, which could be advantageous for India. Commodities such as crude oil, copper, aluminium, and steel, which are linked to the US economic performance, might experience suppressed prices. This would reduce Indias import expenditure, contribute to keeping inflation under control, and ease pressure on the Indian Rupee.
In summation, while the global economic environment is characterised by considerable uncertainty of multiple degrees and types and an anticipated deceleration in growth. Concurrently, the Indian economy has demonstrated stability; with robust domestic drivers and a supportive policy framework that positions it for growth in the forthcoming fiscal year.
Indias Digital Stride
Mobile Subscription |
At 1,154.05 million, India continues to remain the second-largest mobile subscriber in the world1 |
Internet Traffic |
Average monthly data per user soars to 27.5 GB in 2024, CAGR of 19.5% in last five years- |
5G Deployment |
India has emerged has the second-largest market of 5G smartphones |
Digital Identity |
UIDAI has issued >1.36 billion Aadhaar cards till March 20231 |
Digital Transactions |
>181 billion took place in FY 2024-254 |
IT Services Exports |
48 percent of Indias services exports are IT services in FY 2023-24- |
Al Projects |
In 2024, India ranked second in Al GitHub contributions, accounting for 19.9% globally6 |
Unicorns |
At 116, India is ranked #2 globally for Unicorns created2 |
Global Two-Wheeler Industry
The growth of the global two-wheeler market is propelled by several factors, including increasing urbanisation, rising disposable incomes, improved road infrastructure, demand for fuel efficiency, economic growth of rural regions and manoeuvrability of two-wheelers in congested areas.
The expansion of the middle-class population and the adoption of new technologies for sustainability may further drive market expansion. In 2024, the global two-wheeler market was valued at $ 120 billion in 2024, and is projected to grow to $ 127 billion in 2025 and $ 201 billion by 2032.
[Source: https://www.fortunebusinessinsights.com/two-wheeler- market-106884]
Indian Two-Wheeler Industry
The Indian two-wheeler market demonstrated notable resilience and expansion in FY 2024-25, achieving a commendable 9% year-on-year increment in wholesale dispatches. Consequently, India maintained its pre-eminent position as the largest two-wheeler market on a global scale. The industrys ongoing U-shaped recovery, which commenced in FY 2022-23, sustained its positive trajectory, primarily driven by propitious demand dynamics observed across both rural and urban sectors. Notably, rural markets exhibited a resurgence, exceeding the growth rate recorded in urban areas. The substantial demand experienced during the festive season further augmented this positive performance.
Flowever, the fiscal year presented a bifurcated performance across its two halves. During the first half of FY 2024-25, industry dispatches witnessed a substantial year-on-year increase of 16.3%. In contrast, the growth momentum moderated significantly in the second half of the year, settling at 2.2%.
An examination of segmental performance reveals that motorcycles recorded a growth rate of 5.1%, while internal combustion engine (ICE) scooters registered a strong growth rate of 13.0%. The electric vehicle (EV) scooter segment experienced a notable surge of 67.9% year-on-year, albeit from a comparatively smaller base, representing a deceleration from the growth rate observed in the preceding fiscal year.
The slower growth during the second half of the fiscal year was largely attributable to a less propitious economic milieu. This environment was characterised by subdued demand, particularly evident subsequent to the Diwali festive period, constrained by factors such as diminished rural liquidity, a cautious lending environment, lower levels of winter rainfall that impacted rural incomes, and a moderation in urban market growth stemming from subdued wage growth and limited additions to employment.
| Volumes | % YoY | |||||
| H1FY25 | H2FY25 | FY25 | H1FY25 | H2FY25 | FY25 | |
Motorcycle |
6,407,887 | 5,844,418 | 12,252,305 | 13.4% | -2.6% | 5.1% |
ICE Scooter |
3,153,813 | 2,926,308 | 6,080,121 | 18.6% | 7.6% | 13.0% |
EV Scooter |
343,487 | 429,606 | 773,093 | 66.8% | 68.7 % | 67.9% |
Mopeds |
259,793 | 242,020 | 501,813 | 16.5% | -6.5 % | 4.2 % |
^ Tota^ |
10,164,980 | 9,442,978 | 19,607,332 | 16.3% | 2.2% | 9.1% |
Two-Wheeler Segmental Contribution
Motorcycles constituted the predominant segment within the two-wheeler market, accounting for 62.5% of the aggregate volume. This figure represents a contraction of 2.3% in their market share on a year-over-year basis, a phenomenon correlated with the concurrent expansion of the scooter market. Internal combustion engine (ICE) scooters demonstrated an increment of 1.1% in their market share, achieving a level of 31.0%. This proportion is consistent with the established historical range for ICE scooters, which typically oscillates between 30% and 32%. Concomitantly, the electric vehicle (EV) scooter segment experienced an augmentation in its market share, reaching 3.9%, driven by an increasing predilection among consumers for electric mobility solutions. Conversely, mopeds registered a marginal diminution in their segment share, settling at 2.6% of the total two-wheeler market.
Retail Performance
The domestic automotive industry concluded FY 2024-25 with a year-over-year retail growth rate of 6.5%. Notably, the two-wheeler segment emerged as the principal driver of this expansion within the automotive sector, exhibiting a year- over-year growth rate of 7.7%. This performance significantly exceeded the growth rates recorded by passenger vehicles (4.9%) and three-wheelers (4.5%). The robust growth observed within the two-wheeler segment was primarily attributable to the rural markets, which demonstrated an expansion of 8.4%. In contrast, the urban markets within the two-wheeler segment registered a growth rate of 6.8%.
| FY24 | FY25 | YoY | |
2W |
17,527,115 | 18,877,812 | 7.7% |
3W |
1,167,986 | 1,220,981 | 4.5% |
PV |
3,960,602 | 4,153,432 | 4.9% |
Tractors |
892,410 | 883,095 | -1.0% |
CV |
1,010,324 | 1,008,623 | -0.2% |
Total |
24,558,437 | 26,143,943 | 6.5% |
Source: FADA
Category |
Urban | Rural |
2W |
6.8% | 8.4% |
3W |
0.3% | 8.7% |
PV |
3.1% | 7.9% |
CV |
0.6% | -0.9% |
Tractors |
-5.0% | -0.1% |
Total |
5.1% | 7.6% |
The retail performance within the two-wheeler segment in FY2024-25 reveals a discernible moderation in growth momentum across the fiscal year. The initial half of the fiscal year exhibited a robust year-on-year growth rate of 9.1%. However, this growth trajectory experienced a deceleration in the latter half of the fiscal year, settling at a year-on-year growth rate of 6.6%. A significant proportion of this deceleration was observed in the months immediately succeeding the peak festive season, typically encompassing October and November. Specifically, retail volumes registered year-on-year contractions of 18% in December, 6% in February, and 2% in March.
These contractions were principally attributable to a subdued demand environment prevailing within the broader economic landscape, influenced by factors such as constrained rural liquidity, a cautious lending posture adopted by financial institutions, and a moderation in urban market growth stemming from subdued wage growth, as previously elucidated within this analysis.
| Volumes | % YoY | ||||
H1FY25 |
H2FY25 | FY25 | H1FY25 | H2FY25 | FY25 |
2W Retails 8,566,531 |
10,311,281 | 18,877,812 | 9.1% | 6.6% | 7.7% |
SOURCE-FADA
Export Sector
The export sector of the two-wheeler industry exhibited a notable recovery, with aggregate industry dispatches demonstrating a substantial year-over-year augmentation of 21.4%. This robust expansion was primarily attributable to a significant increase of 23% in the export of motorcycles.
| FY24 | FY25 | YoY | |
Motorcycle |
2,943,341 | 3,620,886 | 23.0% |
ICE Scooter |
510,738 | 562,250 | 10.1% |
EV Scooter |
1,609 | 6,843 | 325.3% |
Mopeds |
2,728 | 8,424 | 208.8% |
Total |
3,458,416 | 4,198,403 | 21.4% |
Heros Performance in the Challenging Demand Environment
Hero MotoCorp demonstrated significant sales volume by achieving a sale of 5.9 million units of motorcycles and scooters across domestic and international markets, thereby maintaining its status as the leading manufacturer in the sector. The Company also recorded its highest ever festive retail sales, with 1.3 million units sold. This performance resulted in a revenue growth of 8.8% and a profit growth of 16.2%. Consequently, Hero MotoCorp upheld its established status as the worlds largest manufacturer of motorcycles and scooters for 24 consecutive years, reflecting the enduring trust and confidence of its stakeholder community.
Key Trends in the Industry
FY 2024-25 for the Indian two-wheeler industry was characterised by a notable augmentation of competitive intensity, particularly in the premium motorcycle segment. Various manufacturers strategically introduced new motorcycle models in the 125cc and above engine displacement category, with the strategic objective of augmenting their respective market share in this rapidly expanding sub-segment.
Concurrently, while the rate of adoption of electric vehicles (EVs) in the two-wheeler market demonstrated a continued, albeit gradual, upward trajectory, the industry experienced a significant proliferation of new scooter introductions in the sub- Rs. 1 lakh price segment. These offerings were often characterised by a more constrained operational range.
The provision of price discounts on EV scooters became a prevalent market strategy, particularly among nascent companies, employed to facilitate market share acquisition amidst the escalating competitive environment. Notwithstanding this aggressive pricing strategy employed by emerging entities, established incumbent manufacturers
successfully maintained their dominant market positions by the culmination of FY 2024-25. This sustained market leadership was underpinned by factors including the introduction of novel and well-received product, a firmly established reputation for product quality and reliability, the extensive and efficacious reach of their established dealership networks, and a comprehensive understanding of evolving consumer preferences.
Furthermore, the regulatory framework governing vehicular emissions progressed with the implementation of the On- Board Diagnostics (OBD)-II Phase-B emission standards, which became effective on April 1,2025. These updated regulatory stipulations will enable a more rigorous and real-time monitoring of emission compliance during the operational lifecycle of vehicles. It is pertinent to note that the Indian two-wheeler industry operates under some of the most stringent vehicular pollution control directives globally.
Prominence of Premium and Performance Motorcycles Post-COVID
Post-COVID, recovery of the industries was led by shift in consumer preference and K-shaped recovery towards luxury and performance products, not just limited to two-wheelers but widely spread across four-wheelers, consumer durables, hospitality and many other consumption categories. Indias premium motorcycle market was valued at$ 14.2 billion in 2023 and is projected to reach $ 21.2 billion by 2030, growing at a CAGR of 6.30% during 2024-2030. The segment is witnessing strong growth, driven by rapid urbanisation, an expanding middle class, and favourable demographics- particularly a rising youth population.
During FY 2024-25,125cc and above reported a growth of 7%, ahead of overall motorcycles segment growth.
Increased competition in premium motorcycles
However, the Indian premium motorcycle market experienced intensified competition, particularly after 2023, marked by a series of notable launches. In July 2023, Harley-Davidson, in collaboration with Hero MotoCorp, introduced the X440, to offer a blend of classic design and modern features. Concurrently, a competitor unveiled the Triumph Speed 400, a roadster tailored for urban commuting, and the Scrambler 400 X, variant on the same platform. This trend continued i nto 2024 with another competitor introducing the Guerrilla 450, a variant of the Himalayan 450. This was swiftly followed by the launch of the Pulsar NS400Z. Subsequently, Triumph further expanded its portfolio by launching the Speed T4, a new Speed 400 variant at a lower price point. These developments underscore the dynamic nature of Indias motorcycle sector, which now provides consumers with a broader array of choices in a segment that had otherwise not witnessed much competition in many years.
EV Penetration Improved
Electric two-wheelers retails surpassed the 1 million mark for the first time in FY 2024-25 reaching 1.15 million units compared to 0. 95.million units in FY 2023-24, representing a 21% YoY growth. Key trends that emerged in electric two-wheeler market in FY 2024-25 include:
1. Multiple Scooter Launches in the Sub- Rs. 1 lakh, or, the Commuter EV Segment
Following the removal of FAME-II subsidy, most companies operating in the EV scooters space shifted focus towards affordable products and launched products in the sub- Rs. 1 lakh price range. This led to the demand shift towards commuter EVs, which represents -60% of the EV scooters market compared to 30% prior to the launches.
2. Incumbents took Market Leadership from New-age Companies
While new-age players initially dominated with electric 2W market, established incumbents made significant strides in the space which lead to incumbents taking market leadership by the end of the fiscal.
This was contributed to by established brand trust and network, strategic expansion of product portfolio priced competitively, focus on quality and reliability and aggressive dealer coverage of the incumbent players.
3. Modest Increase in EV Two-Wheeler Penetration
Despite the flurry of launches in mass segment, EV penetration within two-wheelers increased modestly to 6.1% compared to 5.4% in FY 2023-24. Key reasons impeding mass adoption of EVs:
i. Range Anxiety and Limited Range: Affordable models offer limited real-world range, the fear of running out of charge continues to be a key deterrent in the minds of the consumers as it gets compared to the dependable fuel-efficient ICE two wheelers.
ii. Inadequate Charging Infrastructure: Availability of public charging stations, especially fast-charging options, is limited across India particularly outside major metropolitan areas. This makes long journeys or spontaneous trips challenging for EV owners.
iii. Battery-related Concerns: Cost of battery pack continues to be a significant component of the EV. Concerns about battery life, replacement costs and degradation over time continue to impact purchase decisions.
iv. Charging Time: Time required to fully charge an electric two-wheeler is significantly longer than refuelling a petrol scooter or motorcycle causing an inconvenience for users relying on quick turnaround time.
v. Reduction in Government Subsidy: The government is offering a subsidy of Rs. 2.5k/kWh per vehicle with an upper cap of Rs. 5k per vehicle under the PM E-drive scheme. This subsidy has come down from Rs.15k/kWh in the erstwhile FAME-II scheme. This led to increase in the upfront cost of EVs increasing the Total Cost of Ownership (TCO) compared to ICE scooters driving slower adoption.
OBD-II Phase-B Norms Increase Emission Compliance
Emission norms compliance in ICE two-wheelers became stricter post the implementation of OBD-II Phase-B starting 1st April 2025. Under the new norms, the systems allow real-time monitoring of key engine and emission control components like the catalytic converter. This allows for immediate detection of any deviations from the emission standards during actual driving conditions and not just during lab testing.
Prioritising Safety
Safety on the roads continues to remain a major focus for the automotive sector in India. Government mandates require safety features like anti-lock braking systems (ABS) and combined braking systems (CBS) to be standard in two- wheelers to reduce the risk of accidents. A back angle sensor is available across all Hero two-wheelers that cuts off the engine when the two-wheeler tilts beyond 45 degrees, an important safety feature. At Hero MotoCorp, we are conscious of the importance of advanced safety technologies and are proactively integrating them into our products to offer our riders the peace of mind and safety.
Outlook
In FY 2025-26, the Indian two-wheeler industry is poised to build upon the U-shaped recovery trajectory observed over the preceding three fiscal years.
The sector is projected to progressively approach the peak performance levels attained in FY 2018-19. Furthermore, the industry is expected to demonstrate strong growth, potentially outpacing other segments in the broader automotive landscape. This optimistic outlook is underpinned by several factors, viz. a strengthening of rural demand, recovery of demand in the core motorcycle and scooter markets, a sustained acceleration in the adoption of electric vehicles (EVs), and an anticipated higher growth rate within the premium motorcycle segment.
The projections are positive, and the industry is expected to continue to expand substantially in the next decade. The EV-ICE transition could witness a further transition. Beyond products and services, we will invest behind revamping the consumer experience across our physical and digital touchpoints to delight the ever- evolving consumer behaviour.
Charting Strategic Progress
Strategic progress is systematically achieved through the Changing Gears framework, which operates within the overarching Flouse of Strategy and guides the organisations strategic direction towards the year 2030. The Companys strategic focus is centred on Growth and Operating pillars, underpinned by innovation, digitalisation, and comprehensive service offerings, all aimed at enhancing value chain efficiency and maintaining a sustainable competitive advantage within the industry.
Grow the Core
Expanding the 100/110cc Segment
The 100/110cc motorcycle industry continues to be the largest contributor to the Indian two-wheeler industry and we continue to hold a strong foothold in this space. The mass commuter segment is the first step for Indian customers to move to motorised two wheelers. Adoption of these vehicles by the larger population driven by aspiration, financing and opportunity, present a major opportunity to the industry.
Your Company is working on various initiatives for the expansion of this category to attract such first-time buyers, including marketing interventions to aid conversion. Mileage, affordability and durability are the key pillars on which the Company focuses on the appeal to the customers.
Splendors sustained success exemplifies Hero MotoCorps commitment to ongoing innovation, brand reliability, and product dependability, further enhanced by the launch of the Splendor+ XTEC 2.0. This model offers a synthesis of classic design, advanced technology, and practical functionality, solidifying the Splendors emotional connection with consumers. It boasts excellent fuel efficiency and several segment-first technological features, such as a new LED Headlight with HIPL, an Eco Indicator, and a Hazard Light for enhanced safety. It symbolises advancement and the enduring aspirations of 40 million satisfied Splendor customers.
Increase Market Share in the 125cc Segment
The 125cc motorcycle market has grown in the past few years as it benefitted from the downtrade of the more expensive larger bikes and also as it serviced rising aspirations of the 100/110cc customers. Within this segment, the Sporty 125cc sub-segment with premium features attracted additional customers, including replacement buyers from <200cc premium segment. We are working on multi-pronged strategy to increase both volumes and market share in the segment, focusing on the Sporty 125cc sub-segment.
Through the introduction of new models and upgrades to existing leading models, the 125cc motorcycle portfolio provides a diverse array of options to consumers across commuter, stylish and sporty sub-segments.
Sporty, Premium, and Youth-Oriented with Connectivity:
TheXtreme 125R has successfully engaged a new, young, aspirational premium customer base, resulting in strong market response with 65,000 retail units sold during the festive period. Production capacity was increased to meet heightened demand, and market reach and awareness were enhanced through targeted campaigns, leading to substantial market share gains. Furthermore, the Xtreme 125R has achieved significant market share growth in export markets, notably becoming the leading brand in its segment in Bangladesh. Expansion into additional Latin American and other international markets is planned.
Emphasis on Fuel Efficiency Superiority: A large-scale, regionally adapted fuel efficiency campaign, featuring advertising that highlights the Super SplendorXTECs 69 km/l fuel efficiency, has resonated with consumers. The contextual messaging disseminated across various media channels has been particularly effective.
Driving Brand Advocacy - Trust Campaign and LED Variant Launch: The launch of the LED variant of the Glamour model, alongside the Original Glamour OG campaign featuring actor Ram Charan, has served to maintain customer engagement and rebuild brand credibility. The campaign specifically targets the rejuvenation of the Glamour brand.
Increase Share in Scooters
The scooter industry, forming an integral component of the core market, has also experienced a discernible trend of premiumisation, with consumers increasingly demanding higher-capacity 125cc models that offer upgraded features, enhanced styling, and improved power specifications. Consequently, the contribution of this sub-segment has increased significantly from 26% in FY 2019-20 to 47% in FY 2024-25. We are strategically focused on enhancing our market share in this segment through the introduction of multiple new models incorporating industry and segment-first innovations, which include:
New Destini 125
Embodies Fleros commitment to innovation with 30 patent applications and pioneering features, such as an illuminated start switch and auto-cancel winkers, designed to improve rider convenience and safety. This model is positioned as an ideal family scooter, offering segment-leading mileage and an ergonomically optimised riding experience.
Xoom125
A precision-engineered vehicle, the Xoom 125 aims to redefine the 125cc scooter segment with class-leading performance, demonstrating the fastest acceleration within its segment from 0 to 60kmph in 7.6 seconds. It features 14" wheels, in contrast to the predominant 12" wheels found in other scooters, along with wider tyres and an extended wheelbase.
Xoom160
Equipped with a 156cc liquid-cooled engine, the Xoom 160 will incorporate i3s silent start technology and 4-valve technology to optimise efficiency and high-speed performance. The package will be completed with 14" wheels and advanced features, including a smart key with remote seat access, dual-chamber LED headlamps, and a front disc brake with ABS.
Focused on the Top 10 Markets in Global Business
Elero MotoCorp strategically concentrates its export endeavours on its top 10 identified markets while concurrently nurturing growth in other international regions. This focused approach yielded a commendable growth rate in our export markets that was twice the industry average in FY 2024-25. Our key global focus markets include Bangladesh, Colombia, Turkiye, Mexico, Nepal, Guatemala, Nigeria, the Democratic Republic of Congo (DRC), and the Philippines. Our market presence in these regions was augmented through the strategic introduction of market- fit products and the implementation of refined distribution strategies, with notable success observed following the exceptional market response to the launch of the Xtreme 125R in Bangladesh, which significantly contributed to export growth. We further bolstered our presence with various other launches in global markets as part of the expansion strategy.
This led to significant increase in premium portfolio contribution in global markets.
Furthermore, we actively explored new markets, including a significant and successful re-entry into Nepal. The Parts and Accessories business segment demonstrated substantial growth in our global markets, recording a robust increase of 26% over the preceding fiscal year. Our strategy for strengthening the Elero brand in international markets encompasses the creation and dissemination of corporate films, the establishment of strategic partnerships, and the leveraging of the Hero MotoSports platform to effectively showcase the Companys premium product focus and technological capabilities.
To stimulate demand in these markets, targeted financing schemes tailored to various customer segments were introduced, and the Wheels of Trust exchange platform was implemented to facilitate customer upgrades and drive sales.
Making Finance More Accessible
Our retail financing initiatives employ a multi-pronged approach, characterised by strategic partnerships with various banks and Non-Banking Financial Companies (NBFCs), alongside customer-centric schemes meticulously designed to enhance affordability, accessibility, and overall convenience for prospective purchasers of our two-wheelers. These concerted efforts play a significant role in driving sales volumes and expanding our market reach across India. While FY 2024-25 did present specific challenges for NBFCs with substantial exposure to microfinancing, primarily attributable to increased delinquency rates, a series of prudential regulatory measures served to bolster the resilience of the Microfinance Institution sector. Notwithstanding these industry-wide pressures, Flero MotoCorps contribution of retail finance to its sales volumes remained robust, sustaining at levels exceeding 60%, thereby demonstrating a resilient financing ecosystem that ranks among the most effective within the industry. It is our assessment that a more favourable environment within the micro-finance sector would have further stimulated consumption, supported by the availability of quality financing solutions.
This robust performance was underpinned by the strategic offering of tailored financing solutions, such as:
The Digital Retail Finance Platform: Flero MotoCorp launched its Digital Retail Finance Platform in June 2024, aimed at enhancing transparency, availability and ease for customers seeking financing options. The platform benefits customers and also supports Fleros channel partners in providing suitable finance schemes tailored to the customers specific requirements. By the end of FY 2024-25, Flero MotoCorp has already onboarded more than 15 financiers on the platform with a loan sanction time of less than 5 minutes.
Suvidha (DCC) Scheme: Caters to the unbanked or underbanked customers, ensuring they have access to financing options.
Aadhaar-based Funding: Customers who do not have traditional income proofs can avail financing through this scheme.
Low Down Payment Schemes: Schemes with low down payment options enable customers who may not have substantial funds to upgrade to a motorcycle or scooter.
Kisan Kisht Scheme: Support farmers, providing them with tailored financing solutions to meet their specific requirements.
Honour First Scheme: Exclusive finance options are available for the Armed Forces personnel through this scheme, which is applicable in Canteen Stores Departments (CSDs).
No Hypothecation Finance: Financing options that eliminate the need for customers to hypothecate their vehicles, ensuring convenience and ease of ownership.
Card Offers: Collaborations with various card issuers for special finance offers to cardholders.
Upgradation of Channel Network
The Flero 2.0 channel network upgrade represents a strategic initiative aimed at the comprehensive transformation of the Companys sales and service network. The primary objective of this upgrade is to provide an enhanced and premium experience for our customer base, characterised by a contemporary design aesthetic and a more engaging environment conducive to customer interaction, including upgradation of the after-sales service network. The channel network upgrade is further supported by the implementation of a comprehensive sales training programme designed to equip our personnel with the requisite skills and knowledge.
As of the current reporting period, 90% of our retail outlets across India have been successfully upgraded under this strategic initiative.
Win in Premium
With the evolving aspirations of customers, the industry anticipates continued growth in the premiumisation and the premium segment. Hero MotoCorp is strategically focused on reimagining its presence within this segment and reinforcing its market position through the establishment of enhanced distribution channels and the provision of a superior customer experience.
Build Portfolio
Recognising the discerning preference of premium customers for variety. Hero MotoCorp has strategically expanded its premium product portfolio to offer a wider array of options. Following a series of significant product launches in the preceding fiscal year, the Company sustained this momentum with two major introductions in Fiscal Year 2025: the Xpulse 210 and the Xtreme 250R, which have demonstrably transformed customer perceptions of the brands premium offerings. The prior years launches, encompassing the Xtreme 160R 4V, KarizmaXMR, Harley-DavidsonX440,and Mavrick 440, serve as tangible indicators of the technological advancements achieved and the capability building undertaken across the value chain. The strategic strengthening of these brands will be pursued through our established 4C framework, emphasising Culture, Collaboration, Community engagement, and compelling Content creation.
Focused Marketing
Marketing initiatives for premium motorcycles are strategically amplified and targeted, with a specific emphasis on lifestyle integration, performance capabilities, and technological attributes to resonate with a distinct consumer demographic that extends beyond the conventional commuter base, and building a premium imagery for Hero. A significant enhancement of digital marketing strategies is being implemented to effectively engage the contemporary customer, who exhibits a high level of technological proficiency.
This entails the deployment of sophisticated social media campaigns, targeted online advertising, and the creation of compelling digital content that comprehensively illustrates the advanced functionalities and performance advantages of our premium motorcycle offerings. Furthermore, our active engagement with the burgeoning motorcycle riding community is proving particularly appealing to the greater than 200cc segment, thereby establishing a notable and increasingly influential presence for the organisation within this specific market segment.
Strategic Alliances: Harley Davidson
The strategic alliance with Harley-Davidson constitutes a pivotal development, enabling Hero MotoCorp to leverage Harley Davidsons esteemed brand appeal and strategically enter the higher displacement premium segment of the motorcycle market with models commencing with the Harley Davidson X440. Subsequent to the initial collaboration, both companies have announced an extension of their partnership. This expanded alliance aims to further develop the Harley Davidson X440 into new variants and to jointly engineer an entirely new motorcycle, intended for distribution within the Indian market and select international markets, thereby broadening the scope and impact of this strategic collaboration.
Roll Out of Premia Stores
Premia retail establishments are strategically conceptualised to offer an elevated and immersive environment for consumers expressing interest in premium vehicular offerings. The architectural design incorporates contemporary aesthetics, visually appealing presentations, and a deliberate integration of digital technologies to optimise customer engagement and interaction. Within these establishments, distinct zones are allocated to each premium brand-encompassing Heros high-end models, Harley Davidson motorcycles, and VIDA electric two- wheelers-thereby cultivating a unique and differentiated brand experience within a unified retail location. Currently, Hero MotoCorp operates a network exceeding 80 Premia dealerships across the nation and intends to strategically expand this franchise in FY 2025-26, leveraging operational insights and learnings derived from the existing network of stores. The enhanced sales experience facilitated by these retail outlets is evidenced by a Net Promoter Score (NPS) of 78.5 and a Hero Happiness Score of 9.1, reflecting positive sentiment and appreciation for the refined retail format among both dealer partners and end consumers.
Build EV Leadership
During the year, we made substantial investments and took notable steps to establish itself in the growing Indian EV market. We made launches across segments and price points with product differentiation. We entered the mass segment with a sub- Rs. 1 laks price point by launching the VIDA V2 range of electric scooters, which offer notable performance, including a top speed of 90 km/ hr and acceleration from 0-40 km/hr in 2.9 seconds. The removable batteries offer added advantage that can be detached from the scooter and charged at any 5A socket. This is supported by a comprehensive infrastructure comprising around 4,000 fast-charging stations and over 500 service centres distributed across more than 250 cities throughout India.
A key objective has been to deliver an enhanced customer ownership experience and mitigate prominent challenges encountered by EV purchasers. The VIDA V2 includes a vehicle warranty of 5 years or 50,000 km, and a battery pack warranty of 3 years or 30,000 km, aimed at fostering customer confidence and reliability. The Company is focused on attaining cost leadership within the EV segment through efficient component sourcing, streamlined manufacturing processes and economies of scale.
Partnerships and Collaborations
Strategic investments have been made in Euler Motors, an electric three-wheeler manufacturer, signifying the Companys expansion into the fast-growing electric three- wheeler sector and adding value through diversification of its electric vehicle portfolio, while continuing to cement its leadership in the future of sustainable mobility.
Taking our collaboration further with Ather Energy, a partnership has been established to develop an interoperable fast-charging network, designed to accelerate the adoption of electric vehicles. This collaboration affords electric vehicle users access to both VIDA and Ather Grid charging stations. Efforts are being directed towards leading the transition to green mobility through the expansion of charging network infrastructure in conjunction with HPCL, BPCL and Jio BP fuel stations throughout India.
Advancements have been made in the development of electric motorcycles in collaboration with Zero Motorcycles, a global leader in electric motorcycles and powertrains.
This California-based entity integrates advanced automotive technology with conventional motorcycle design to enhance the riding experience for international consumers.
Diversify Revenue Streams
Our strategic focus encompasses the expansion and diversification of non-product revenue streams through the capitalisation of supplementary and adjacent market opportunities. Key areas of emphasis include:
• Scaling the Parts, Accessories, and Merchandise (PAM) business segment
• Platformisation initiatives, monetisation of digital assets, and the strategic utilisation of data
Scale-up PAM Business
The Parts, Accessories, and Merchandise (PAM) business remained a substantial contributorto the Companys performance during FY 2024-25. As a result of strategic initiatives aimed at expanding this segment, a record revenue of Rs. 5,828 crore was achieved, demonstrating a growth of 8% over FY 2023-24. The organisation is committed to providing customers with a comprehensive solution for their non-vehicular requirements, through the reinforcement of a strategic approach focused on augmenting the businesss depth and breadth.
Increasing Breadth: The Companys strategic commitment to the expansion of its distribution network, initiated with the Hero Genuine Parts Distributors (HGPD) programme in 2018, remained a key operational priority throughout FY 2024-25. Our strategic approach involved the systematic identification of underserved market areas and a determined effort to enhance distribution penetration, thereby ensuring greater availability of our comprehensive Parts and Oil product lines. Recognising the significant latent demand within rural markets, we further amplified our network expansion initiatives through the strategic development and extension of our presence to the Taluka level, aiming to enhance accessibility and cater to a broader customer base in these regions.
Increasing Depth: The Companys portfolio of aftermarket products encompasses Spare Parts, Engine Oil, Bike Care Products, Tyres, Batteries, Merchandise, and Accessories.
Our sustained initiatives aimed at augmenting the average transaction value per retailer, notably through the proactive inclusion of C&D retailers within the framework of the foster program, have significantly contributed to the robust revenue growth observed within this business segment. This included Hero Genuine Oil (HGO) portfolio, which achieved a year-on- year growth of 13%.
Our Global Parts Center (GPC), situated in Neemrana, Rajasthan, provides a substantial storage capacity of approximately 26,000 Stock Keeping Units (SKUs). We have fully optimised the operational efficiency of this facility to maximise the utilisation of our existing storage capacity. In addition to our current infrastructure, we have earmarked a strategic investment of Rs. 600 crore in the state of Andhra Pradesh over the next two fiscal years for the establishment
of a state-of-the-art Global Parts Center 2.0 in Tirupati.
This strategic investment underscores our unwavering commitment to enhancing our logistical and operational capabilities and further strengthening our presence in the southern region.
Digitalisation
The Company embarked on a strategic journey to drive purpose-led growth and unlock operational efficiencies through the adoption of future-fit technologies. As processes, technology infrastructure, data management, and advanced analytics converged, this transformative journey redefined our operational paradigms, embracing simpler, faster, and seamlessly interconnected solutions to effectively address industry disruptions. This digital transformation has enabled us to enhance operational efficiency across key functional areas, including manufacturing processes, sales operations, after-sales service delivery, and vendor development, by strategically leveraging advanced analytics, Internet of Things (loT) technologies, and process automation.
Your Company strategically leveraged digital platforms to enhance the accessibility of parts and accessories for our customer base. This includes the development and maintenance of online platforms and mobile applications wherein customers can readily identify and procure genuine components. Furthermore, we integrated our operational framework with the Open Network for Digital Commerce (ONDC) to further expand the digital reach of our genuine parts offerings, thereby streamlining the after-sales service experience and expanding the number of sellers and the listed Stock Keeping Units (SKUs) from 1,100 to 3,000.
This integration significantly enhances our geographical reach and provides end-customers with a broader range of procurement options.
Your Company maintains a strong focus on the integration of digital channels to enhance the overall customer journey.
This includes the ongoing augmentation of the user interface of our digital platforms to cater to both pre-and post-purchase customer needs. A key initiative in this regard was the launch of the Hero One App, designed to provide customers with a seamless ownership experience. This application has demonstrated significant success in enhancing the product lifecycle journey of our customers, evidenced by 1.28 million downloads and 1.40 million active monthly users. Furthermore, the Service App 2.0 provides an integrated digital journey, incorporating live workshop management and technician management functionalities to optimise the after-sales service process.
Build a Future-fit Organisation
Your Company is actively engaged in the strategic development of afutu re-fit organisation through a multi-faceted approach encompassing financial resilience, human capital development, cultural evolution, and process optimisation, thereby ensuring comprehensive organisational preparedness. We are committed to maintaining robust margins, both overall and at the business unit level, while concurrently making strategic investments to facilitate sustained growth.
To complement these objectives, capabilities are being strategically strengthened across various critical domains, including Research and Development (R&D), the premium product segment, the Electric Vehicle (EV) sector, and the digital landscape. We endeavour to establish an efficient operating model within the organisation, characterised by a horizontally structured and role-based framework that fosters greater empowerment and accountability at all levels. The Company has prioritised the advancement of internal candidates to leadership positions, while simultaneously cultivating future leaders through robust talent pipeline and succession planning initiatives across various organisational strata. Furthermore, the Company remains open to the strategic recruitment of external candidates to augment its leadership capabilities.
Quality and innovation constitute the foundational principles of our organisational ethos, and we are resolutely focused on delivering first time right quality products. We are actively pursuing the implementation of lean methodologies and the digitalisation of our end-to-end processes across the entire organisation, recognising the paramount importance of efficiency and agility in todays competitive landscape.
This strategic imperative involves a significant impetus towards the digital transformation of the supply chain, the effective utilisation of data analytics, the comprehensive digitalisation of customer experience, the expansion of digital sales channels, and the leveraging of data-driven marketing strategies to create seamless and integrated interactions for customers, distributors, and retailers.
Drive ESG
Hero MotoCorp distinguishes itself as the sole Indian two-wheeler brand to have earned a coveted position on the prestigious Dow Jones Sustainability Index (DJSI), a recognition reserved for the top 10% of companies globally demonstrating excellence in Environmental, Social, and Governance (ESG) standards. This extraordinary feat positions us uniquely on the global stage, establishing Hero MotoCorp as one of the top four global automobile companies featured on the esteemed DJSI World Index. Furthermore, we are one of only two Indian automotive companies recognised on the DJSI Emerging Markets Index.
Building upon this significant milestone, Hero MotoCorp has also been featured in the esteemed S&P Global Sustainability Yearbook 2025, securing the designation of Industry Mover with a commendable high score of 69, signifying substantial year-on-year improvement in our sustainability performance relative to our industry peers.
Our commitment to environmental stewardship was further recognised through the receipt of the 11th Cll National Award for Environmental Best Practices in 2024. Additionally, we achieved significant recognition in workplace safety by winning the prestigious Sword of Honour from the British Safety Council.
While these recognitions underscore the significant strides we have made in our ESG commitments, demonstrating our strong focus on environmental sustainability, social responsibility, and robust governance, we have established even more ambitious objectives and targets. Your Company is committed to achieving 100% carbon neutrality and zero hazardous waste status, ensuring product recyclability, establishing green dealerships, and attaining 500% water positivity. These environmental goals will be complemented by our dedication to championing and advancing stringent safety standards and protocols.
We are actively progressing towards initiating and leading large-scale impactful social programmes and are deeply engaged in corporate social responsibility initiatives that benefit communities, particularly in critical areas such as road safety. Furthermore, we have placed increased emphasis on employee well-being and strategic talent management, with a specific target of achieving 30% gender diversity within our workforce by the year 2030. To ensure effective and ethical operations, we have established robust structures and processes for corporate governance, with a strong focus on risk management, Board effectiveness, ethical conduct and responsible sourcing practices. Transparent reporting is ensured through the periodic review of all tax positions and constructive engagement with relevant tax jurisdictions.
We have actively collaborated with multiple stakeholders to enhance our organisations performance across critical sustainability matters and significant operational domains. We are dedicated to the adoption of new technological advancements within our operations and to facilitate the comprehensive collection of ESG-related data. Our specific ESG goals across the Environment, Social, and Governance fronts have been clearly articulated and we are actively progressing towards their fulfilment.
Operational Highlights
Across the organisation, we are committed to driving performance improvements and operational excellence through a multifaceted strategy. Central to this effort is the extensive adoption of digital technologies-from advanced analytics and real-time data monitoring to automated workflows and cloud- based collaboration platforms-that streamline processes, eliminate redundancies, and accelerate decision-making.
Equally critical is our focus on safety. We continuously refine and reinforce stringent health, safety, and environmental protocols, supported by digital tools such as wearable sensors, predictive-maintenance algorithms, and mobile safety-audit applications. These innovations help us identify and mitigate risks proactively, ensuring that every employee returns home safe each day.
Sustainability underpins every initiative we undertake.
By integrating eco-friendly processes-such as waste-heat recovery, water-reduction systems, and energy-efficient production techniques-we minimise our carbon footprint and conserve precious natural resources. These measures not only align with global environmental standards but also position us to meet and exceed our own ambitious decarbonisation targets.
At the same time, we are cultivating an inclusive and supportive workplace culture where every team member feels valued, heard, and empowered. Through targeted learning and development programmes, mentorship networks, and flexible work arrangements, we encourage collaboration, creativity and continuous skill enhancement.
Our sustained investments in these areas are designed to embed innovation into our DNA and nurture a high- performance mindset. We believe that by empowering our people with the right tools, training, and support, we will unlock new levels of productivity, resilience, and long-term value forall our stakeholders.
Ignite a culture of Racing
Team Hero MotoSports sustained its competitive performance throughout FY 2024-25. A notable achievement was the teams victory in the FIM World Rally-Raid Championship (W2RC) 2024. This significant win marked the sixth overall FIM world title and the first instance of an Indian manufacturer earning this prestigious accolade. The Championship was secured by Ross Branch, following his exceptional performance throughout the racing season. This triumph also represented a significant milestone for the nation, solidifying its position within the elite ranks of larger and more experienced international teams.
In an innovative endeavour to engage racing and adventure enthusiasts within India, we introduced the Rally Life Boot Camp, a novel format providing a unique opportunity for participants to receive instruction and training from top-tier Dakar Rally athletes. The inaugural iteration of this Boot Camp, held in Pune, garnered enthusiastic participation from over 150 individuals and their motorcycles, who engaged in training sessions under the guidance of the esteemed Hero MotoSports rider, Joaquim Rodrigues.
Hero for Startups
The Hero For Startups programme was initiated with the explicit objective of revolutionising mobility within the Indian subcontinent and in international markets. This strategic programme, which is aligned with the visionary principles of the Honourable Prime Minister Shri Narendra Modis Atmanirbhar Bharat initiative, serves as a pivotal platform for enhancing Indias competitive standing in the global arena. Its fundamental purpose is to identify and provide crucial financial support to innovative startup ventures nationwide that exhibit demonstrable potential to fundamentally reshape the future landscape of the automotive sector.
Program Objectives
Foster Innovation: To catalyse the development of cutting- edge technologies and disruptive solutions with the aim of fundamentally transforming the mobility sector.
Strengthen Innovation: To cultivate strategic collaborations with emerging startup enterprises, providing them with essential resources and comprehensive support to facilitate the creation of technology-driven innovations that invigorate the automotive industry.
Sustainability and Long-Term Impact: To guide the future trajectory of mobility through the promotion of innovation that is both scalable and sustainable, with a primary focus on generating long-term positive impact.
The programme is designed to:
• Drive technological advancements and pioneering solutions to revolutionise the mobility sector
• Enhance innovation through strategic partnerships with emerging startups, providing essential resources and support for technology-driven advancements that revitalise the automotive industry
• Guide the future of mobility via scalable and sustainable innovation with a focus on long-term impact
Key Features
Business Development and Scale-up Opportunities:
Opportunity to work on remunerated Proof of Concept (PoC) with Hero MotoCorp, to develop and scale innovations and integrate the solutions into Heros product portfolio.
Technical Support: Access to Heros R&D, manufacturing and business teams, to have resources to test, develop, and deploy their solutions.
Bootcamps and Capacity Building: Tailored bootcamps focusing on enhancing technological and operational capabilities of startups, preparing for future industry challenges and ensuring sustainability of their solutions.
Mentorship from Heros Leadership: Guidance from experienced industry professionals and Heros leadership team, empowering them to scale their ventures and make transformative impact on the mobility sector.
Championing Sport
Hero MotoCorp has embraced sport as a powerful catalyst for social transformation. We believe that, much like our two- wheelers, athletics unite communities, build character, and inspire ambition. Our commitment transcends sponsorship- it reflects a deep conviction that supporting sport is integral to nation-building and personal growth.
A Unified Sporting Vision
Guided by the principle Championing Sport. Empowering Youth. Elevating India., we connect local talent to global platforms. Whether on a neighbourhood field or an international arena, we stand alongside athletes-providing resources, infrastructure, and encouragement that nurture dreams and unlock potential.
Hockey: Reviving Indias Heritage
No sport is more entwined with Indias heritage than hockey.
As Global Partner to the International Hockey Federation (FIH) since 2010, Hero MotoCorp champions both elite and grassroots initiatives. We entered into a strategic partnership with the FIH
for a period of five years, assuming the role of Title Sponsor for the Hockey India League for the ensuing three seasons, commencing with the 2024-25 season. We support FIH Mens and Womens World Cups, the Pro League, Hockey5s, and junior formats, while strengthening domestic competitions such as the Hero Hockey India League and the newly-launched Hero Womens Hockey India League-an important step for gender equity.
These leagues bring world-class hockey to cities and towns nationwide, inspiring youth and providing clear pathways to professional play. Our collaboration with Indian hockey legend Sardar Singh-whose journey from humble beginnings to national captain embodies discipline and determination- illustrates our belief in sport as a vehicle for social mobility. Through infrastructure development, coaching clinics, and community partnerships, we aim to restore hockeys revered place in India and foster a new generation of champions.
Cricket: Fuelling the Nations Passion
Cricket is more than a game in India; it is a unifying force. Since our inaugural Hero Cup in 1993, Hero MotoCorp has been woven into crickets fabric. We have sponsored bilateral series of the Mens National Team, as well as marquee events such as the IPL, CPL, ICC World Cup and Asia Cup.
Our dedication to emerging talent remains steadfast. We proudly welcome Abhishek Sharma-dynamic young batter for Sunrisers Hyderabad-as our newest brand ambassador. His fearless approach and explosive potential mirror our forward-looking vision. Over the years, we have aligned with legends such as Sourav Ganguly, Yuvraj Singh, Virender Sehwag, and Smriti Mandhana, leveraging their influence to inspire millions and elevate the sports profile.
Beyond marquee events, we support academy programmes, talent hunts, and performance analytics to identify and mentor promising cricketers from diverse backgrounds. By integrating educational initiatives with athletic training, we ensure holistic development, preparing athletes for success both on and off the field.
Golf: Nurturing Precision and Perseverance
Golf embodies focus, patience, and excellence-qualities at the heart of our ethos. Hero MotoCorp proudly sponsors four marquee tournaments: the Hero Indian Open (DP World Tour), Hero Womens Indian Open (Ladies European Tour), Hero Dubai Desert Classic (DP World Tour), and the Hero World Challenge (PGA Tour invitational hosted by Tiger Woods). Our organisation extended its title sponsorship of the Hero World Challenge through the 2030 playing season, underscoring our continued commitment to the sport of golf.
Since 2014, our partnership with Tiger Woods has elevated our global presence and underscored our commitment to the sports highest standards. Yet our vision extends beyond elite competition. We invest in Indias rising stars-Pranavi Urs.Tvesa Malik, and Diksha Dagar-providing coaching, exposure, and support that empower them to compete on the world stage. Emerging talents like Akshay Bhatia and Sahith Theegala,
of Indian origin, also benefit from our backing, proving that with the right support, ambition knows no borders.
Building Sustainable Ecosystems
Our role as a sports enabler extends beyond event sponsorship. We invest in:
• Infrastructure with upgrading stadiums, practice facilities, etc.
to world-class standards.
• Grassroots Outreach conducting clinics and equipment drives in underserved communities.
• Education Partnerships by collaborating with schools and universities to embed sports in curricula.
• These initiatives create sustainable ecosystems where talent can emerge organically, ensuring long-term impact and broadening participation across socioeconomic strata.
Measurable Impact and Future Outlook Over the past decade:
Community Reach
Over 100,000 youth have benefitted from free coaching and equipment grants.
Competitive Success
Numerous athletes nurtured in our programmes have achieved state-level and national honours.
Equity Gains
Womens participation in supported leagues has increased by over 50%.
Yet, despite these milestones, we remain humble. Our journey is one of continuous learning, responsive adaptation, and deeper collaboration with sports federations, policymakers, and local communities. We are exploring cutting-edge talent scouting tools, expanding digital engagement platforms, and refining our support frameworks to meet evolving needs.
Hero MotoCorp does not merely build mobility-we build momentum. We do not just manufacture vehicles-we fuel dreams, pride, and possibility. Through golf, hockey, cricket, and an expanding array of sports initiatives, we unite purpose with performance. As athletes cross finish lines, lift trophies, and break barriers, they carry forward our belief that every Indian deserves the opportunity to shine. Together, we champion sport, empower youth, and elevate India-rallying around the vision that a true Hero inspires the world to dream bigger, aim higher, and rise together.
Customer Outreach Programmes
Our organisation implements a comprehensive spectrum of customer outreach programmes, encompassing both direct consumer engagement strategies and broader community- focused initiatives.
The core values of energy, enthusiasm, and determination that define Hero MotoCorp enable us to establish profound connections with the contemporary youth demographic. A notable initiative during the reporting period was the launch of an innovative festive campaign, entitled Shubh Muhurat Aaya, Hero Saath Laya/ marking the third iteration of Hero MotoCorps Grand Indian Festival of Trust (GIFT).
This campaign strategically featured youth icons and actors, Di vyendu Sharma and Hansika Motwani, in a ground-breaking GenAI-powered campaign activated across six languages for real-time lead nurturing and personalised customer interaction.
Furthermore, the Company is actively engaged in augmenting its power brands and cultivating enhanced brand awareness amongst its customer base. A recent significant undertaking in this regard was the unveiling of the latest campaign for the Hero Xtreme Power Brand, prominently featuring global icon Virat Kohli. The central theme of this campaign revolves around the Xtreme brands core motto, Challenge the Xtreme, and effectively showcases the power, precision, and overall performance attributes of the Xtreme 125R and Xtreme 160R 4V motorcycle models. In addition to traditional marketing avenues, we are also strategically strengthening the gaming imagery associated with the Xtreme 125R through a sponsorship of Playground Season 4, recognised as the largest gaming reality show, and a collaborative tie-up with Krafton for various on-ground gaming activations aimed at engaging a younger, digitally native audience. In addition to the above activations, various other campaigns were launched highlighting product differentiation viz. the Original Glamour OG campaign featuring Ram Charan (highlighting the new LED Headlamps and rebuilding brand credibility) and Thaat 69 Ke campaign featuring Divyendu Sharma for Super Splendor XTEC (highlighting mileage and fuel efficiency).
Cost-saving Initiatives
Our organisational teams engage in persistent and dedicated efforts to enhance productivity through the implementation of various strategic initiatives. These initiatives are specifically directed towards the reduction of work content, the optimisation of variable manufacturing costs through improvements in tooling efficiency, the prudent management of consumables, the enhancement of energy efficiency, and the maximisation of yield.
Development of Channel Network
We are committed to building a future-ready channel ecosystem by reimagining and optimising channel formats to deliver a seamless, standardised experience across all touchpoints.
Our focus is on creating a unified retail journey that reflects Hero MotoCorps evolving brand and customer aspirations.
On the ground, our geographical expansion continues at pace.
We have significantly accelerated the rollout of Hero 2.0 stores-now numbering nearly 930+ stores within a year, at a rapid pace of over 1 store per day. Simultaneously, our premium footprint continues to strengthen with the growing presence of Hero Premia stores 80 stores across 73 towns reinforcing our presence in the premium two-wheeler segment.
To ensure agility and performance, we have instituted robust new review frameworks that provide continuous monitoring and support across the channel network. These initiatives are enabling a more responsive, scalable, and customer-focused retail architecture aligned with our long-term growth ambitions.
Aligned with our sustainability commitments, we are advancing the Green Partner Development Programme- an initiative aimed at transforming our dealerships into eco-friendly spaces. We aim to have 100% green dealerships by 2030. From adopting biodegradable consumables and cool roofing solutions to embracing solar energy, dry washing techniques, and water recycling systems, we are enabling a greener, more responsible retail footprint.
We are equally focused on strengthening the capabilities of our channel partners. In FY 2024-25, we held structured learning programmes in collaboration with leading business institutes, ensuring our partners remain ahead of the curve. Key initiatives like the Succession Planning framework and the Channel Onboarding Programme are helping build a future-ready dealer ecosystem.
Our Women in Successful Entrepreneurship (WISE) programme, in partnership with BML Munjal University is empowering our women dealer entrepreneurs and fostering a more diverse and dynamic business network.
Financial Performance
Particulars |
FY 2024-25 | FY 2023-24 |
Motorcycles and Scooters sold (No. of units in lakh) |
58.99 | 56.21 |
Income (Rs. crore) |
||
- Revenue from Operations |
40,756 | 37,456 |
- Other Income |
1,056 | 893 |
Total Income (Rs. crore) |
41,812 | 38,348 |
Expenses (Rs. crore) |
||
- Cost of Materials Consumed & Changes in Inventories |
27,069 | 25,431 |
- Employee Benefit Expenses |
2,595 | 2,402 |
- Other Expenses |
6,021 | 5,097 |
Total expenses (Rs. crore) |
35,684 | 32,930 |
Profit Before Tax (Rs. crore) |
6,128 | 5,258 |
Tax Expense (Rs. crore) |
1,518 | 1,290 |
Profit After Tax (Rs. crore) |
4,610 | 3,968 |
Other Comprehensive Income (Rs. crore) |
(12) | (22) |
Total Comprehensive Income (Rs. crore) |
4,598 | 3,946 |
Earning per Equity Share on Profit After Tax (Rs.) |
231 | 199 |
Key Financial Ratios
Particulars |
FY 2024-25 | FY 2023-24 | Change |
Trade Receivables Turnover Ratio |
16.28 | 17.34 | -6.11% |
Inventory Turnover Ratio |
18.66 | 17.67 | 5.58% |
Interest Coverage Ratio |
324.20 | 309.12 | 4.9 % |
Current Ratio |
1.87 | 1.50 | 25.25% |
Debt Equity Ratio |
0.01 | 0.01 | 0.00% |
Operating Profit Margin (%) |
12.49 | 12.13 | 2.97 % |
Net Profit Margin (%) |
11.03 | 10.35 | 6.55% |
Return On Equity (%) |
24.40 | 22.88 | 6.64% |
COMMENTARY
Trade Receivables Turnover Ratio - The debtor turnover ratio decreased from 17.34 times in FY 2023-24 to 16.28 times in FY 2024-25. This change is primarily attributable to a lower average outstanding balance in comparison to the previous year.
Inventory Turnover Ratio - The inventory turnover ratio has witnessed an increase from 17.67 times in FY 2023- 24 to 18.66 times in FY 2024-25. This improvement in inventory turnover is mainly on account of lower average inventory levels.
Interest Coverage Ratio - The interest coverage ratio has increased by 4.9% primarily due to higher profits during the year. This upward trend signifies improved financial health and a stronger ability to comfortably meet interest obligations.
Current Ratio - The current ratio has increased from 1.50 times to 1.87 times, which has seen as positive change on account of a higher increase in current assets. The current ratio is a measure of a companys ability to meet its short-term obligations using its current assets.
Operating Profit Margin (%) - Operating profit margin for the year has increased from 12.13% to 12.49%.This improvement is primarily due to better realisation, effective cost control & value engineering.
Net Profit Ratio/Margin (%) - The net profit margin has experienced an increase from 10.35% to 11.03%, primarily attributable to healthy operating margins and higher other income.
Return on Net Equity/Net Worth (%) - The increase in profits has resulted in a notable improvement in the Return on Net Worth, which has increased from 22.88% to 24.40%. This improvement highlights our increased efficiency in utilising the Companys resources to generate profits.
Human Resources
Hero MotoCorp places a high priority on the strategic development of its human capital to cultivate a dynamic and inclusive workplace environment conducive to professional advancement. The organisation emphasises comprehensive talent development strategies, ensuring the provision of ongoing educational and career growth opportunities for its entire workforce.
Employees are regarded as critical assets integral to organisational success, and commensurate investments are made in their professional development and overall well-being. Innovation and collaborative engagement are actively encouraged across all functional domains, and significant contributions are formally acknowledged and appropriately rewarded through established organisational frameworks.
The organisations human resources strategies are consistently aligned with a strong dedication to the principles of sustainability, the advancement of environmentally conscious operational practices, and responsible corporate conduct. The company maintains a focused commitment to promoting employee diversity and has made substantial progress throughout the fiscal year in augmenting the representation of diverse talent across its organisational structure.
Corporate Social Responsibility
Hero MotoCorp maintains a steadfast commitment to the empowerment of communities and the proactive promotion of sustainable development practices. We prioritise strategic investments in education, safety, healthcare infrastructure, environmental conservation efforts, and community development initiatives, all meticulously designed to generate a significant and beneficial impact on society and the environment. We are working towards road safety awareness and skill development programmes.
Our community development endeavours are specifically focused on effecting positive and lasting environmental change and contributing substantively to the cultivation of robust and healthy communities. Hero MotoCorps profound dedication to Corporate Social Responsibility (CSR) serves as a clear manifestation of its core organisational values and its steadfast commitment to principles of social accountability.
Risk Management
A comprehensive risk mitigation strategy is fundamentally essential foraddressing both internal and external vulnerabilities in our ongoing pursuit of operational excellence. Rigorous risk management practices are critically important not only to provide robust protection against external contingencies and minimise the repercussions of internal issues, such as product recalls, but also to assure the uninterrupted continuity of operational processes and maintain the strength of our brand reputation. This steadfast commitment to risk management is a fundamental tenet of our business activities and is meticulously overseen by our dedicated Risk Management Committee (RMC), a standing committee of the Board of Directors. By proactively identifying potential risks and diligently disseminating pertinent updates, detailed mitigation strategies, and emerging trends to the RMC, we enhance our organisational resilience through the implementation of robust business continuity planning (BCP) protocols and our inherent capacity to effectively manage multifaceted challenges, thereby preserving stakeholder trust and bolstering confidence in our brand within the competitive market landscape.
Internal Controls
The Company possesses a comprehensive internal controls framework that is firmly established within its operational processes. The Audit and Assurance function serves as an instrumental element in providing assurance to the Board of Directors concerning the adequacy and effectiveness of these controls. Moreover, it furnishes strategic counsel to management regarding the evolving risk environment, thereby enabling the proactive identification and mitigation of potential risks. The internal audit plan is formulated in close conjunction with management, taking into account the requirements of statutory auditors and prioritising critical risks that are aligned with the Companys strategic objectives. Principal findings derived from internal audits are subjectto quarterly review by the Audit Committee, which also oversees the advancement of management actions arising from these reviews. Technological advancements are leveraged to optimise internal audit processes. Automation and sophisticated analytical tools, including data analytics, artificial intelligence, and machine learning, are implemented to facilitate continuous monitoring, thereby ensuring a pre-emptive approach to risk management throughout the organisation.
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