Crime Today News
Hero MotoCorp dispatched 5.08 lakh motorcycles and scooters in May 2025, recovering from April’s production disruptions, though the company’s annual growth trajectory continues to face headwinds amid intensifying competition from Honda.
The May performance represents a 66% month-on-month increase from April’s 3.05 lakh units, when Hero had temporarily halted production at four plants for three days to conduct maintenance and supply chain realignment. However, annual growth remained modest at 1.9% compared to May 2024’s 4.98 lakh units.
Mixed Segment Performance
Motorcycle dispatches reached 4.75 lakh units in May, posting a marginal 0.8% annual growth over the previous year’s 4.71 lakh units. The scooter segment showed more volatility, with May dispatches of 32,537 units declining 20.8% year-on-year despite a strong 68% recovery from April’s low base.
For the April-May period, Hero’s cumulative dispatches of 8.13 lakh units fell 21.2% short of the previous year’s 10.32 lakh units, reflecting the impact of April’s production halt on overall volumes. Domestic sales totaled 7.78 lakh units for the two-month period, while exports contributed 35,586 units.
Competitive Pressure
The April production halt allowed rival Honda Motorcycle & Scooter India to extend its wholesale advantage, with Honda dispatching 4.81 lakh units compared to Hero’s 3.05 lakh units that month — a gap of 1.75 lakh units. This marked the second instance this fiscal year when Honda outpaced Hero in monthly wholesale dispatches, following a similar occurrence in February.
Hero’s wholesale market share has been under pressure throughout FY25, declining from over 30% in previous years to the current 28-29% range as Honda systematically narrows the gap. The competition has particularly intensified in the motorcycle segment, Hero’s traditional stronghold.
Retail Performance
Despite wholesale fluctuations, Hero maintained strong retail momentum with 5 lakh vehicle registrations in May 2025, according to VAHAN data. The company has consistently gained retail market share month-on-month throughout 2025, suggesting sustained consumer preference even as wholesale dynamics shift.
This retail resilience indicates that Hero’s distribution and brand strength remain intact, though the company will need to balance inventory management with competitive pressures going forward.
Electric and Premium
Hero’s electric mobility arm VIDA dispatched 8,361 units in May, with 7,161 VAHAN registrations for its V2 electric scooter range. While still small relative to the overall market, VIDA achieved a 7.2% market share in the electric segment and is preparing for a new product launch on July 1.
The company continued expanding its premium retail network, with Premia outlets now covering over 100 locations. Hero’s focus on premiumization represents a strategic shift as the entry-level segment faces margin pressures and intensified competition.
Export performance showed stability with 18,704 units in May, roughly flat compared to the previous year. Hero’s global retail performance demonstrated particular strength in Bangladesh and Colombia, though overall international volumes remain modest relative to domestic operations.
Outlook Remains Cautious
While May’s recovery demonstrates Hero’s ability to normalize operations after planned disruptions, the company faces ongoing challenges in maintaining its market leadership position. The modest annual growth rates and persistent competitive pressure from Honda suggest that Hero’s dominance in the two-wheeler market is no longer assured.
The upcoming festive season and monsoon period will be crucial for Hero to demonstrate whether its retail strength can translate into sustained wholesale momentum and whether its operational strategies can effectively counter Honda’s aggressive market approach.
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