New Delhi: India's largest two-wheeler maker Hero MotoCorp said there's no demand slump in the domestic market despite global headwinds triggered by the West Asia crisis and that the company is going full throttle with its expansion plans.
"We've not seen the slowdown yet," said Harshavardhan Chitale, CEO, in an interview.
Chitale is bullish on the Indian economy's shock-absorbing capacity. "The economy has been really resilient. "We as a country have handled this very well," he said, drawing a sharp contrast with other markets where Hero operates-countries that have seen fuel rationing, price spirals, and industrial disruption.
India, he argued, is navigating the turbulence "remarkably well," with industrial production holding firm and inflation under control.
Chitale took over the reins at the New Delhi-based company in January at a time when Hero was revamping operations by putting together, among others, a new management. The company has been in flux through most of last year with senior management exits including former CEO Niranjan Gupta moving on, among others. Volumes too had come under pressure amid tepid demand in the local market prior to the September 22, 2025 cut in goods and services tax (GST).
While Hero MotoCorp has been able to retain its leadership of the domestic market since the termination of a joint venture between the Hero Group and Honda Motor Company (HMC) in 2010, it has been losing market share for the last few years amid escalating competition. The company's share in the wholesale market fell to 28% in FY26 from 45% in FY12.
Chitale said Hero MotoCorp has been "under-represented in growing categories", referring to scooters, premium motorcycles, electric vehicles and exports, which impacted sales. "Where (mass/commuter motorcycle segment) we are big, we are very big with 90% market share," he said. "(But) scooters, we have 7% market share. Premium/big bikes that are upcoming, we have 2% market share. Then exports, where we started late because as JV we could not export earlier, we have less than 10% market share. You have to grow these. So, I see it as a huge growth opportunity."
For FY27, Hero MotoCorp is maintaining its forecast of high single-digit growth for the two-wheeler industry in line with analyst projections. If fuel prices do climb further, Chitale sees a surprising upside. "If fuel cost increases and fuel efficiency becomes a top-of-mind concern, then we should benefit," he said, pointing to Hero's motorcycles delivering around 10% better mileage than rivals in the same category-a legacy captured in its iconic advertising campaign: Fill it. Shut it. Forget it.
The company has now set up dedicated teams to grow key verticals. Chitale said the focus is on expanding footprint in under-represented and growing segments-EVs, scooters, premium motorcycles, and international business-by putting in place end-to-end teams for each covering planning, marketing, R&D, and manufacturing.
"It's a race to see how soon we can move to where the growth is, and how we cannot lose where we are strong (commuter segment)," he said. "It needs new skills, a few different ways of doing things, and a few new talents. So, we are bolstering all that."
Hero has earmarked ₹1,500 crore in capital expenditure this fiscal, with similar outlays planned for the next two to three years. Scooter capacity is being doubled, EV capacity is nearly tripling, and a major parts distribution centre is coming up in Tirupati.
On the product front, Hero will drive in around a dozen models into the domestic market this year-and a similar volley in its global markets, where it now operates across 52 countries. International business grew 42% last year, and the first two months of this fiscal year have already clocked 77% growth.
