Hero MotoCorp is well-positioned to benefit in a market where fuel efficiency increasingly drives purchase decisions, given its strong portfolio of high-mileage motorcycles, said a senior company executive. He added that the company has seen growing demand for fuel-efficient models following the back-to-back petrol price hikes last month.
“Wherever fuel prices go up, it benefits Hero because our mileage association is strong. We are seeing certain segments like the 100 cc becoming big. We are anticipating good demand in an environment where mileage is becoming the driver for purchase,” Ashutosh Varma, Chief Business Officer (CBO), India Business Unit, Hero MotoCorp told TNIE on the sidelines of the company’s two Flex Fuel vehicles – the Splendor+ and HF Deluxe – launch earlier this month.
He added that Hero MotoCorp is also seeing strong demand for its electric two-wheelers and aims to triple monthly EV volume to around 60,000 units by the end of the year.
“There is excitement around electric vehicles (EVs). We are selling what we are able to produce, around 20,000 units per month at the moment, and by the end of this year, we aim to produce and sell three times what we are selling now. Last year we produced and sold 1.50 lakh EVs and this year we aim to double the sales volume,” said Varma.
India’s electric two-wheeler market continued its strong growth trajectory in May 2026, registering total retail sales of 170,733 units, up nearly 63% year-on-year. As per FADA data, Hero MotoCorp’s Vida range saw its sales growing 158% to 19,067 units in May 2026, compared to 7,385 units in May 2025.
Varma said that while the current projection for the two-wheeler industry remains intact, any further rise in fuel prices might weigh on the sector’s growth. State-owned oil marketing companies increased petrol prices by 7.8% and diesel prices by 8.6% last month.
“Currently, the projections hold for 2W industry growth. So far the government has been able to hold the price hike to a large extent but if prices go up significantly in future, the overall two-wheeler industry would be impacted…At present, the industry generally is anticipating that there can be a stress on higher cc bikes,” said Varma.
Two-wheelers clocked best-ever monthly numbers at 18,44,947 units in May this year as compared to 17,15,581 units in the same month a year ago, a growth of 7.54%, per FADA data. Rating agency ICRA estimates two-wheeler wholesale volume growth of 3–5% YoY in FY2027, constrained by a high base.
“Demand will be supported by GST rationalisation and improved replacement demand. However, a weak El Niño-led monsoon forecast, alongside fuel-driven price hikes and input cost inflation, is expected to moderate growth momentum in the coming months,