'Future won't be defined by vehicle volumes': Hero MotoCorp's Pawan Munjal bets on EVs, premium bikes, global markets

Hero MotoCorp is betting on electric mobility, premium motorcycles and international markets to power its next phase of growth, with Executive Chairman Pawan Munjal asserting that the country's largest two-wheeler maker is evolving into a diversified mobility and technology enterprise driven by innovation rather than vehicle volumes.

Addressing shareholders at the company's 43rd Annual General Meeting (AGM) on August 5, Munjal said, "For us, the road to Viksit Bharat will not be defined by the number of vehicles we produce, but by the technologies we create, the value we deliver, the talent we nurture, and the global confidence we inspire."

The comments came as Hero MotoCorp outlined its long-term strategy after delivering its best-ever financial performance in FY26 despite geopolitical uncertainties, supply chain disruptions and rapidly evolving global market dynamics. Meanwhile, Hero MotoCorp reported a standalone net profit of Rs 1,454 crore for the quarter ended June 2026 (Q1 FY27), marking a 29% increase from Rs 1,126 crore in the year-ago period. Revenue from operations grew 36% year-on-year to Rs 12,999 crore, supported by a 23% rise in total sales volumes

The New-Delhi headquartered firm sold nearly 65 lakh motorcycles and scooters, generated a return on capital employed of over 31%, while its electric mobility brand VIDA registered 190% year-on-year retail growth. The company also increased its strategic investments in Ather Energy and Euler Motors, while continuing its collaboration with Zero Motorcycles.

Technology over volumes

"Today, Hero MotoCorp is evolving into a diversified mobility and technology enterprise -- driven by investments in emerging technologies, electric mobility, premium segments, advanced R&D, intelligent manufacturing, global partnerships, and sustainable operations," Munjal said.

He said the company is strengthening its electric mobility ecosystem through VIDA and NOVUS by integrating advanced products, connected technologies, digital platforms, charging infrastructure and Battery-as-a-Service (BaaS) solutions.

"Our global R&D ecosystem across India and Europe, supported by strategic partnerships and investments in AI, digitalisation, and data-driven manufacturing, is laying the foundation for the next generation of sustainable mobility," Munjal added.

Premium mobility takes the fast lane

The premium motorcycle segment remains another key growth pillar. Munjal said Hero MotoCorp's performance portfolio—including the Xpulse 210, Xtreme 250R, Karizma XMR and Harley-Davidson X440T—has strengthened the company's position in the performance mobility space.

To build on this momentum, Hero MotoCorp has set up a dedicated premium business vertical under Anuj Dua, which will focus on portfolio expansion, strategic partnerships, exclusive retail experiences and deeper rider engagement.

International business is also expected to play a larger role in Hero MotoCorp's growth strategy. The company said its overseas operations expanded 40% year-on-year in FY26, led by robust growth in Bangladesh, Nepal, Sri Lanka and Colombia, as it continued to expand its global footprint.

Alongside its growth strategy, shareholders at the AGM considered proposals including a final dividend of ₹75 per share for FY26, in addition to the interim dividend of ₹110 per share announced in February, and the reappointment of Pawan Munjal as Executive Chairman and Whole-time Director for another five-year term.