Hero MotoCorp has confirmed plans to expand its premium motorcycle portfolio with the introduction of new models under both the Hero and Harley-Davidson brands during FY2026-27. The announcement was made in the company’s FY26 Annual Report, where it highlighted its strategy to strengthen its presence in the rapidly growing 150-350cc motorcycle segment.
According to the company, the sub-350cc category has emerged as the fastest-growing part of India’s premium motorcycle market. Hero believes evolving buyer preferences, along with favourable taxation for motorcycles below 350cc, are encouraging more customers to move towards higher-capacity motorcycles.
The company noted that India’s two-wheeler market continues to evolve through three key trends—premiumisation, scooterisation and electrification. Within motorcycles, the premium segment recorded an 18 percent year-on-year increase during FY26, outperforming the broader motorcycle market.
Hero MotoCorp also pointed to changes in the GST structure as a major factor supporting demand in the 150-350cc segment. The reduced 18 percent GST rate for motorcycles below 350cc has lowered acquisition costs, making these models more accessible to buyers while prompting manufacturers to develop new mid-capacity platforms.
Several manufacturers have already responded to this shift. Bajaj Auto recently introduced a new 350cc engine platform derived from its larger 399cc architecture, allowing its motorcycles to qualify for the lower tax bracket. Triumph has also launched 350cc versions of its 400cc motorcycles, while KTM has introduced 350cc variants of the 390 Duke and 390 Adventure. Bajaj has additionally downsized the Pulsar NS400Z and Dominar 400 to 349.13cc, resulting in lower pricing due to the revised GST structure.
Hero MotoCorp observed that motorcycles above 350cc have experienced comparatively slower growth after the revised tax framework increased the effective tax burden on this category. While manufacturers have largely absorbed the higher taxation to minimise the impact on retail prices, the company believes demand remains stronger in the sub-350cc segment.
Alongside its product plans, Hero MotoCorp reported a strong financial performance for FY26. The company sold 6.5 million motorcycles and scooters across domestic and international markets, registering a 9.7 percent increase over the previous financial year. This enabled Hero to retain its position as the world’s largest manufacturer of motorcycles and scooters for the 25th consecutive year.
Revenue for the year increased to ₹46,830 crore, while EBITDA and profit after tax also recorded double-digit growth. The company said its performance was supported by higher sales of scooters, premium motorcycles, electric vehicles and stronger international operations. Harley-Davidson wholesale volumes also posted healthy growth during the year.
Despite the positive performance, Hero MotoCorp acknowledged challenges including shortages of heavy rare earth magnets, semiconductor supply constraints, rising raw material costs and disruptions caused by geopolitical developments. Even so, the company said it will continue investing in premium products, retail expansion and brand development as demand shifts towards higher-value motorcycles.
