Hero MotoCorp’s latest earnings call paints a picture of a more tempered two‑wheeler market for the rest of FY27, with the company projecting 8‑9% growth in the second half. That comes after a blistering 27% YoY jump in retail sales during Q2, driven largely by a 23% boost in ICE models and an 82% surge in EVs.
TVS Motor, a peer, has also dialed back its expectations, forecasting single‑digit growth in Q3 and Q4 after a strong first half. Bajaj Auto, meanwhile, is more bullish, predicting double‑digit growth into Q4, though it cautions that uneven rainfall could squeeze rural demand.
EVs are the engine keeping the momentum alive; Hero’s EV sales jumped 82% in the first half, and the company says the segment will lift the industry’s overall growth into the high single‑digit range. This means that even as ICE sales slow, the electrified lineup will continue to drive new purchases.
On the export front, Hero saw shipments dip 24% in September, falling to 85,000 units from 112,000 a year earlier, largely due to a Colombia earthquake and higher fuel prices in Bangladesh. Yet foreign retail sales climbed 19% in the same quarter, signalling that overseas demand is holding steady. Management expects a double‑digit rebound in the next two quarters as port operations normalize.
For buyers, the moderate domestic growth suggests that price adjustments may be limited, but the rising EV market could see new models and incentives. Keep an eye on upcoming launches, especially in tier‑2 cities where EV uptake is accelerating. As Hero ramps up export, we may also see a tighter supply of certain models, affecting availability in the near term.