The country’s largest two-wheeler manufacturer, Hero MotoCorp on Thursday said it was not cutting back on growth spending to protect margins and will continue investments both in terms of capacity expansion and brand building to support its premium scooter, electric vehicle (EV), and global business portfolio.
“We are not going to compromise or cut down on investments needed for driving growth and market share expansion…quarter two (Q2) was a good example. Probably that was a quarter where we saw the full manifestation of commodity cost hits that started end of February. Despite that, we were able to gain Vahan share in every month of the quarter. So we have remained focused in continuing to invest behind growth, and that’s what we will do,” Harshvardhan Chitale, Chief Executive Officer, Hero MotoCorp said in a post-earnings call with analysts.
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He said in the next few quarters, there would be various levers that will make it happen and those levers are not discretionary or the required investments behind growth. They are improving unit economics of products and the company was focused on driving growth and market share expansion, he noted.
Speaking about capital expenditure, Vivek Anand, Chief Financial Officer, Hero MotoCorp said that the company remains on track with its full-year guidance of ₹1,500 crore.
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“In the first half (H1), we’ve already deployed close to ₹600 crore towards our key projects. We’ve already expanded our capacity in Splendor and have doubled our ICE scooter capacity to 80,000 units per month,” he said.
Chitale also said that looking at the growth momentum in the company’s parts and accessories business, the company had already announced investment of ₹700 crore in setting up a complete new automated parts centre and double its parts handling capacity from what it is right now at its second global parts centre (GPC 2.0), to cater to parts availability for both Indian and global markets.
Talking about festival sales, he said Hero MotoCorp has seen a growth of 24 per cent in its sales till now.
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“This also is a good way to look at it because it goes right from pre-GST impact to post-GST. Otherwise, one gets into this conundrum that right at the start of Navratri last year, the new GST came into effect, and there was a huge amount of pent-up demand that then immediately resulted into sale last year, and that will skew the base. Hence, looking into this broader period gives us a good indication, and we have seen a 24 per cent growth on this broader definition of festival. There we are not seeing any share erosion,” he explained.
Talking about its EV brand Vida, Chitale said it maintained strong operational momentum, with retail volumes rising 74 per cent year-on-year (y-o-y) to 66,000 units in the quarter, supported by its monthly production ramp-up to 30,000 units in September and portfolio diversifications across broader price points.
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“Vida business continued to improve on unit economics, resulting in business becoming gross margin positive during the quarter. This led to ₹70 crore optimisation of spends over the previous quarter,” he noted.
The company also informed that 70 per cent of its EV portfolio got production linked incentive (PLI) in the quarter, and it has already received PLI certification for nearly 100 per cent of its portfolio earlier this month.
Published on October 29, 2026
