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Hero MotoCorp shares gain as FY26 strategy emphasises global expansion and retail market strengthHero MotoCorp has signalled that the financial year 2026 will be a pivotal year for international growth, as it builds on last year’s strong overseas performance. In FY25, the company achieved 43% year-on-year growth in international business, led by South Asia and Latin America — regions that have shown increasing demand for affordable two-wheelers.By Sudarshan Kumar  July 15, 2025, 11:34:57 AM IST (Published)3 Min ReadShares of Hero MotoCorp Ltd., India’s largest two-wheeler maker, are trading higher after the company unveiled a detailed growth roadmap in its annual report.

The stock has risen 3% in the opening hour as management detailed plans to expand international operations, strengthen its premium motorcycle portfolio, and sustain retail momentum in the domestic market.

Hero MotoCorp has signalled that the financial year 2026 will be a pivotal year for international growth, as it builds on last year’s strong overseas performance. In FY25, the company achieved 43% year-on-year growth in international business, led by South Asia and Latin America — regions that have shown increasing demand for affordable two-wheelers.

Building on this momentum, the company announced plans to enter major European markets, including Germany, France, Spain, and the UK, in the second quarter of FY26. This expansion is expected to mark a significant step in Hero’s evolution from a largely India-focused manufacturer to a more diversified global brand.

“FY26 will be a year of acceleration,” executive chairman Pawan Munjal declared in the report, emphasising that pushing deeper into international territories is central to the company’s long-term growth ambitions.

The company has also reaffirmed its commitment to premiumisation, an area that has become increasingly important for revenue diversification and margin expansion. According to the company, its collaboration with Harley-Davidson continues to pay off. Encouraged by the response, Hero plans to expand the Harley-Davidson partnership with new platforms, which will be crucial in appealing to premium buyers in both India and international markets.

Another key pillar of Hero’s FY26 strategy is electric mobility. The company highlighted its ₹510 crore investment in Euler Motors, which strengthens Hero’s presence in the electric three-wheeler market — a segment expected to see robust growth driven by e-commerce, logistics, and last-mile delivery.

Hero has also been scaling up its own electric two-wheeler offerings under the Vida brand, targeting urban customers and young buyers keen to switch to sustainable mobility solutions.

While the international push grabbed headlines, the company remains committed to reinforcing its dominance in the domestic market. The company said its retail market share has been on an upward trajectory in the current calendar year, underpinned by a strong recovery in rural demand, targeted marketing, and steady product availability.

Importantly, retail finance penetration remains robust at 65%, giving customers easier access to credit and supporting sustained retail sales. The company also noted that inventory levels are well-calibrated, avoiding the excess stock buildup that weighed on the industry during earlier periods of volatility.

Hero’s leadership in the 125cc motorcycle segment—where the company says it has seen rapid market share gains in FY25—is expected to continue in FY26.

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