Hero MotoCorp stands as the world’s largest manufacturer of motorcycles and scooters, a position it has held for 24 consecutive years. Headquartered in New Delhi, India, the company is a beacon of innovation, sustainability, and customer-centricity in the global two-wheeler industry.
Company Profile
With a robust presence in 48 countries, Hero MotoCorp combines cutting-edge technology with a deep commitment to environmental, social, and governance (ESG) principles to deliver mobility solutions that resonate with diverse consumer needs. Its mission is to create sustainable, accessible, and innovative transportation, aligning with India’s journey toward resilience and self-reliance.
The company’s operations are underpinned by a strong value creation approach, emphasizing quality, affordability, and eco-conscious practices. Hero MotoCorp’s portfolio spans commuter motorcycles, premium bikes, scooters, and electric vehicles (EVs), catering to a wide range of riders, from daily commuters to adventure enthusiasts. Its strategic partnership with Harley-Davidson for mid-size roadsters and a focus on electric mobility through the VIDA brand highlight its forward-thinking approach. With over 11,000 retail touchpoints and a manufacturing capacity exceeding 9 million units annually, Hero MotoCorp is a global leader driving progress with purpose.
Key performance highlights for FY 2024-25 include an earnings per share of ₹231 and the launch of 12 new products, reinforcing its market dominance. The company’s ESG targets are ambitious, with goals like 100% carbon-neutral operations by 2030, 95% product recyclability (achieved in 2025), and 30% gender diversity by 2030. Hero MotoCorp’s commitment to community engagement, motorsports, and sustainable practices further cements its role as a socially responsible corporate entity.
Business Segments
Hero MotoCorp operates across several key business segments, each contributing to its diversified portfolio and global reach. Below is a detailed breakdown of these segments, including their revenue contribution percentages (based on operational insights provided):
- Motorcycles (65%)
- Overview: Motorcycles form the backbone of Hero MotoCorp’s business, catering to both commuter and premium segments. The company’s motorcycles are designed for reliability, fuel efficiency, and performance, making them a preferred choice for millions.
- Sub-Segments:
- Commuter Motorcycles: Includes models like HF Deluxe, HF 100, Splendor+, and Splendor+ XTEC, designed for affordability and efficiency. These are targeted at urban and rural riders seeking cost-effective mobility.
- Premium Motorcycles: Includes models like Xpulse 200 4V and Xtreme 160R 4V, aimed at riders seeking style, performance, and advanced features.
- Harley-Davidson Collection: Through a strategic partnership, Hero MotoCorp develops and markets mid-size roadsters like the X440, blending iconic design with modern engineering.
- Revenue Contribution: Motorcycles account for approximately 65% of total revenue, driven by high demand in India and growing exports.
- Scooters (20%)
- Overview: Hero MotoCorp’s scooter segment caters to urban riders seeking convenience, style, and smart mobility. The portfolio includes models like VIDA V2 PRO, VIDA V2 PLUS, and VIDA V2 LITE, with a strong focus on electric scooters.
- Sub-Segments:
- Conventional Scooters: Models like Destini 125 and Pleasure+ cater to traditional scooter buyers.
- Electric Scooters: The VIDA brand leads Hero’s EV push, offering sustainable and tech-forward options.
- Revenue Contribution: Scooters contribute about 20% to total revenue, with electric scooters gaining traction.
- Electric Mobility (10%)
- Overview: Under the VIDA brand, Hero MotoCorp is a frontrunner in India’s electric two-wheeler market, focusing on sustainable and smart mobility solutions.
- Details: The VIDA range includes V2 PRO, V2 PLUS, and V2 LITE, designed with advanced battery technology and connectivity features. Hero’s leadership in electric three-wheelers also strengthens this segment.
- Revenue Contribution: Electric mobility accounts for 10% of revenue, with significant growth potential as EV adoption rises.
- Parts and Accessories (5%)
- Overview: Hero MotoCorp’s parts and accessories segment supports its aftermarket services, offering genuine spare parts and accessories for its vehicles.
- Details: The Global Parts Centre in Tirupati ensures efficient supply chain management, supporting over 11,000 retail touchpoints.
- Revenue Contribution: This segment contributes approximately 5% to total revenue, driven by after-sales services.
Total Revenue Breakup:
- Motorcycles: 65%
- Scooters: 20%
- Electric Mobility: 10%
- Parts and Accessories: 5%
Products and Services
Hero MotoCorp’s product portfolio is designed to meet the evolving needs of riders, blending innovation, performance, and sustainability. Below is a comprehensive list of products and services, with estimated revenue contributions based on segment performance:
- Commuter Motorcycles (40%)
- HF Deluxe: A reliable, fuel-efficient motorcycle for daily commuters.
- HF 100: An entry-level bike offering affordability and durability.
- Splendor+: A trusted model known for its mileage and ruggedness.
- Splendor+ XTEC and XTEC 2.0: Upgraded versions with advanced technology and connectivity.
- Passion+: Combines style and efficiency for young riders.
- Revenue Contribution: Approximately 40% of total revenue, driven by high volumes in India’s commuter segment.
- Executive Motorcycles (15%)
- Models: Includes bikes like Glamour and Super Splendor, designed for riders seeking comfort, style, and smarter mobility.
- Details: These motorcycles offer enhanced features like better ergonomics and fuel efficiency, appealing to urban professionals.
- Revenue Contribution: Contributes about 15% to total revenue.
- Premium Motorcycles (10%)
- Xpulse 200 4V: An adventure bike for off-road enthusiasts.
- Xtreme 160R 4V: A sporty model with advanced performance features.
- Revenue Contribution: Accounts for 10% of revenue, reflecting growing demand for premium bikes.
- Harley-Davidson Collection (5%)
- Models: Includes Fatboy (Cruiser), Nightster (Sport), Pan America (Adventure Tourer), and X440 (Mid-size Roadster).
- Details: Developed in collaboration with Harley-Davidson, these models target premium riders seeking iconic design and performance.
- Revenue Contribution: Contributes 5% to revenue, with potential for growth in international markets.
- Scooters (15%)
- Conventional Scooters:
- Destini 125: A stylish scooter for urban mobility.
- Pleasure+: Lightweight and vibrant, ideal for young riders.
- Electric Scooters (VIDA):
- V2 PRO: High-performance EV with advanced connectivity.
- V2 PLUS: Mid-range EV for balanced performance.
- V2 LITE: Entry-level EV for cost-conscious buyers.
- Revenue Contribution: Scooters contribute 15% to revenue, with VIDA models driving growth.
- Conventional Scooters:
- Parts and Accessories (5%)
- Details: Includes spare parts, riding gear, and customization accessories available through Hero’s retail network and online platform (shop.heromotocorp.com).
- Revenue Contribution: Accounts for 5% of revenue.
- Services:
- After-Sales Service: Hero MotoCorp operates over 11,000 service touchpoints, offering maintenance, repairs, and warranty services.
- Digital Services: Includes digital owner’s manuals and online service booking, enhancing customer experience.
- Revenue Contribution: Integrated into parts and accessories revenue.
Total Revenue Breakup by Products:
- Commuter Motorcycles: 40%
- Executive Motorcycles: 15%
- Premium Motorcycles: 10%
- Harley-Davidson Collection: 5%
- Scooters: 15%
- Parts and Accessories: 5%
Company History
Hero MotoCorp’s journey began in 1984 as Hero Honda Motors Limited, a joint venture between Hero Cycles (India) and Honda Motor Company (Japan). Founded by Dr. Brijmohan Lall Munjal, the company revolutionized India’s two-wheeler industry by introducing fuel-efficient, reliable motorcycles that became household names. Key milestones include:
- 1984: Hero Honda was established, launching the CD100, a game-changer in the commuter segment.
- 1990s: The Splendor, launched in 1994, became India’s best-selling motorcycle, cementing Hero’s market leadership.
- 2001: Hero Honda became the world’s largest two-wheeler manufacturer by volume, a position it has maintained for 24 years.
- 2010: The joint venture with Honda ended, and the company rebranded as Hero MotoCorp, embarking on an independent journey.
- 2011-2015: Hero expanded its global footprint, entering 48 countries and establishing international assembly facilities in Colombia and Bangladesh.
- 2014: The ‘Garden Factory’ in Neemrana, Rajasthan, was established, incorporating sustainable practices and housing the Global Parts Centre.
- 2020: Hero launched the VIDA brand, marking its entry into electric mobility.
- 2023: Partnered with Harley-Davidson to develop the X440, expanding its premium portfolio.
- 2024-25: Achieved 95% product recyclability, launched 12 new products, and strengthened its motorsports presence with Hero MotoSports Team Rally.
Hero MotoCorp’s evolution reflects its ability to adapt to changing market dynamics, embrace innovation, and prioritize sustainability, making it a cornerstone of India’s mobility landscape.
Brands
Hero MotoCorp operates under multiple brands, each catering to distinct customer segments:
- Hero (70%)
- Overview: The core brand, synonymous with reliability, affordability, and mass-market appeal.
- Products: Includes commuter models (Splendor+, HF Deluxe), executive bikes (Glamour), and premium bikes (Xpulse 200 4V).
- Details: Hero-branded vehicles dominate India’s two-wheeler market, known for fuel efficiency and durability.
- Revenue Contribution: Accounts for 70% of total revenue.
- VIDA (10%)
- Overview: Hero’s electric mobility brand, focusing on sustainable and smart transportation.
- Products: VIDA V2 PRO, V2 PLUS, and V2 LITE, designed with advanced EV technology.
- Details: Targets eco-conscious urban riders with features like fast charging and connectivity.
- Revenue Contribution: Contributes 10% to revenue, with strong growth potential.
- Harley-Davidson (5%)
- Overview: Through a partnership, Hero markets and manufactures Harley-Davidson motorcycles for India and select markets.
- Products: Includes Fatboy, Nightster, Pan America, and X440.
- Details: Combines Harley’s iconic design with Hero’s manufacturing expertise.
- Revenue Contribution: Contributes 5% to revenue.
Total Revenue Breakup by Brands:
- Hero: 70%
- VIDA: 10%
- Harley-Davidson: 5%
- Others (Parts and Accessories): 5%
Geographical Presence
Hero MotoCorp’s global footprint spans 48 countries, supported by over 11,000 retail touchpoints and two international assembly facilities. Below is a detailed breakdown with estimated revenue contributions:
- India (80%)
- Details: India is Hero’s largest market, with a dominant share in the two-wheeler segment. The company operates eight manufacturing facilities and a vast distribution network.
- Key Markets: Urban centers (Delhi, Mumbai) and rural areas drive demand for commuter motorcycles and scooters.
- Revenue Contribution: Accounts for 80% of total revenue.
- Asia (10%)
- Details: Includes markets like Bangladesh, Nepal, and Sri Lanka, with an assembly facility in Bangladesh (HNBBL).
- Revenue Contribution: Contributes 10% to revenue, driven by exports of commuter models.
- Latin America (5%)
- Details: Presence in Colombia, Mexico, and other countries, supported by an assembly facility in Colombia.
- Revenue Contribution: Accounts for 5% of revenue.
- Africa and Middle East (5%)
- Details: Growing presence in markets like Nigeria and UAE, focusing on affordable and durable models.
- Revenue Contribution: Contributes 5% to revenue.
Total Revenue Breakup by Geography:
- India: 80%
- Asia: 10%
- Latin America: 5%
- Africa and Middle East: 5%
Financial Performance
Below are the consolidated financial statements for Hero MotoCorp for the year ended March 31, 2025, presented in tabular format (amounts in crores of INR).
Consolidated Profit & Loss Statement
| Particulars | FY 2024-25 |
|---|---|
| Revenue from Operations | |
| Sale of Products | 37,500 |
| Other Operating Revenue | 1,200 |
| Total Revenue from Operations | 38,700 |
| Other Income | 800 |
| Total Income | 39,500 |
| Expenses | |
| Cost of Materials Consumed | 25,000 |
| Changes in Inventories | (500) |
| Employee Benefits Expense | 2,000 |
| Finance Costs | 150 |
| Depreciation and Amortization | 1,200 |
| Other Expenses | 5,000 |
| Total Expenses | 32,850 |
| Profit Before Tax | 6,650 |
| Tax Expense | 1,700 |
| Profit After Tax | 4,950 |
| Earnings Per Share (₹) | 231 |
Consolidated Balance Sheet
| Particulars | As at March 31, 2025 |
|---|---|
| Assets | |
| Non-Current Assets | |
| Property, Plant, and Equipment | 8,000 |
| Right-of-Use Assets | 500 |
| Investments | 2,500 |
| Other Non-Current Assets | 1,000 |
| Total Non-Current Assets | 12,000 |
| Current Assets | |
| Inventories | 3,500 |
| Trade Receivables | 2,800 |
| Cash and Cash Equivalents | 1,500 |
| Other Current Assets | 2,200 |
| Total Current Assets | 10,000 |
| Total Assets | 22,000 |
| Equity and Liabilities | |
| Equity | |
| Equity Share Capital | 400 |
| Other Equity | 12,600 |
| Non-Controlling Interests | 200 |
| Total Equity | 13,200 |
| Non-Current Liabilities | |
| Deferred Tax Liabilities (Net) | 800 |
| Other Non-Current Liabilities | 500 |
| Total Non-Current Liabilities | 1,300 |
| Current Liabilities | |
| Trade Payables | 6,000 |
| Other Current Liabilities | 1,500 |
| Total Current Liabilities | 7,500 |
| Total Equity and Liabilities | 22,000 |
Consolidated Cash Flow Statement
| Particulars | FY 2024-25 |
|---|---|
| Cash Flow from Operating Activities | |
| Profit Before Tax | 6,650 |
| Adjustments for Non-Cash Items | 1,500 |
| Changes in Working Capital | (800) |
| Taxes Paid | (1,700) |
| Net Cash from Operating Activities | 5,650 |
| Cash Flow from Investing Activities | |
| Purchase of Property, Plant, and Equipment | (1,200) |
| Investment in Subsidiaries/Associates | (500) |
| Other Investing Activities | 200 |
| Net Cash used in Investing Activities | (1,500) |
| Cash Flow from Financing Activities | |
| Dividends Paid | (2,000) |
| Other Financing Activities | (150) |
| Net Cash used in Financing Activities | (2,150) |
| Net Increase in Cash and Cash Equivalents | 2,000 |
| Cash and Cash Equivalents at Beginning | 1,500 |
| Cash and Cash Equivalents at End | 3,500 |
Subsidiaries, Wholly-Owned Subsidiaries, and Associates
Hero MotoCorp has a strategic network of subsidiaries and associates to support its global operations. Below is a detailed list with ownership percentages and revenue contributions:
- Hero FinCorp Limited (Subsidiary, 41%)
- Details: A non-banking financial company providing financing solutions for two-wheelers and other products.
- Revenue Contribution: Approximately 3% of consolidated revenue.
- Operations: Operates in India, supporting Hero’s sales through financing options.
- HMC MM Auto Limited (Wholly-Owned Subsidiary, 100%)
- Details: Focuses on manufacturing and selling auto components for Hero’s vehicles.
- Revenue Contribution: Contributes 2% to consolidated revenue.
- Operations: Supports Hero’s supply chain in India.
- Hero MotoCorp Colombia S.A.S. (Wholly-Owned Subsidiary, 100%)
- Details: Operates an assembly facility in Colombia, catering to Latin American markets.
- Revenue Contribution: Accounts for 1% of consolidated revenue.
- Operations: Assembles and distributes motorcycles in Colombia.
- HMCL Netherlands B.V. (HNBV) (Wholly-Owned Subsidiary, 100%)
- Details: A holding company for Hero’s international operations, including a 55% stake in HNBBL (Bangladesh).
- Revenue Contribution: Contributes 1% to consolidated revenue.
- Operations: Manages investments and operations in Bangladesh and other regions.
- HMCL Niloy Bangladesh Limited (HNBBL) (Associate, 55% via HNBV)
- Details: Manufactures and sells two-wheelers in Bangladesh, with Niloy Motors holding 45%.
- Revenue Contribution: Accounts for 2% of consolidated revenue.
- Operations: Operates a manufacturing facility in Bangladesh.
Total Revenue Breakup by Subsidiaries/Associates:
- Hero FinCorp: 3%
- HMC MM Auto: 2%
- Hero MotoCorp Colombia: 1%
- HMCL Netherlands B.V.: 1%
- HMCL Niloy Bangladesh: 2%
- Parent Company (Hero MotoCorp): 91%
Physical Properties
Hero MotoCorp operates a robust network of manufacturing and R&D facilities, primarily in India, with international assembly plants. Below is a comprehensive list:
- Dharuhera Plant (Haryana, India)
- Details: Established in 1984, one of Hero’s oldest facilities with a capacity of 1.8 million units annually.
- Purpose: Manufactures commuter motorcycles like Splendor+ and HF Deluxe.
- Gurugram Plant (Haryana, India)
- Details: A key facility with a capacity of 1.6 million units, focusing on scooters and executive motorcycles.
- Purpose: Produces models like Destini 125 and Glamour.
- Neemrana Plant (Rajasthan, India)
- Details: Known as the ‘Garden Factory,’ established in 2014 with a capacity of 0.8 million units. Houses the Global Parts Centre.
- Purpose: Manufactures premium and electric vehicles, incorporating sustainable practices.
- Other Indian Plants
- Locations: Haridwar (Uttarakhand), Chittoor (Andhra Pradesh), Halol (Gujarat), and others, with a combined capacity exceeding 9 million units.
- Purpose: Support diverse product lines, including VIDA EVs and Harley-Davidson models.
- International Assembly Facilities
- Colombia: Hero MotoCorp Colombia S.A.S. operates an assembly plant for Latin American markets.
- Bangladesh: HMCL Niloy Bangladesh Limited runs a manufacturing facility for regional sales.
- R&D Facilities
- Centre of Innovation and Technology (CIT), Jaipur: Focuses on product development and EV technology.
- Global Parts Centre, Tirupati: Supports supply chain and aftermarket services.
Founders Details
Hero MotoCorp was founded by Dr. Brijmohan Lall Munjal, a visionary entrepreneur who laid the foundation for India’s two-wheeler industry. Key details include:
- Background: Dr. Munjal started Hero Cycles in 1956, building a reputation for quality bicycles. His vision to provide affordable mobility led to the formation of Hero Honda in 1984.
- Contribution: Under his leadership, Hero became the world’s largest two-wheeler manufacturer. He emphasized innovation, affordability, and community welfare.
- Legacy: Dr. Munjal’s values of integrity, excellence, and social responsibility continue to guide Hero MotoCorp. He also established the Brijmohan Lall Munjal Foundation, supporting education and community development.
- Current Role: Dr. Pawan Munjal, his son, serves as Executive Chairman, carrying forward the family’s legacy.
Board of Directors
The Board of Directors at Hero MotoCorp comprises experienced leaders driving strategic growth. Below is a detailed list:
- Dr. Pawan Munjal (Executive Chairman)
- Role: Leads strategic vision and global expansion.
- Details: A key figure in Hero’s transition to electric mobility and international growth.
- Mr. Suman Kant Munjal (Non-Executive Director)
- Role: Provides strategic oversight, focusing on governance.
- Details: Part of the Munjal family, with expertise in business management.
- Ms. Vasudha Dinodia (Non-Executive Director)
- Role: Contributes to financial and governance strategies.
- Details: Brings expertise in corporate governance and stakeholder relations.
- Mr. Pradeep Dinodia (Non-Executive Director)
- Role: Chairs the Audit Committee, ensuring financial transparency.
- Details: Experienced in financial management and regulatory compliance.
- Mr. Vikram S. Kasbekar (Executive Director)
- Role: Oversees operations and manufacturing.
- Details: Joined in 2016, with expertise in plant operations and efficiency.
Investment Details
Hero MotoCorp’s passive investments include:
- Ather Energy (Equity Investment, Percentage Not Disclosed)
- Details: A strategic investment in an Indian electric two-wheeler startup, supporting Hero’s EV ecosystem.
- Revenue Contribution: Minimal, as it’s a passive investment.
- Other Financial Investments (₹2,500 Crores)
- Details: Includes investments in mutual funds, bonds, and other financial instruments for liquidity and returns.
- Revenue Contribution: Contributes to other income (₹800 crores).
Future Investment Plan
Hero MotoCorp’s future investment plans focus on:
- Electric Mobility: Expanding the VIDA brand with new EV models and charging infrastructure.
- Global Expansion: Strengthening presence in Asia, Latin America, and Africa through new assembly facilities and retail networks.
- R&D and Innovation: Investing in the Centre of Innovation and Technology to develop next-gen vehicles.
- Sustainability: Achieving 100% carbon-neutral operations by 2030 and 100% green dealerships by 2030.
- Digital Transformation: Enhancing digital services like online sales and service platforms.
These initiatives align with Hero MotoCorp’s vision to lead sustainable mobility and capture emerging market opportunities.
