en.Wedoany.com Reported - India's Hero MotoCorp plans to launch new motorcycles under both the Hero MotoCorp and Harley-Davidson brands this fiscal year, aiming to strengthen its market position in the premium motorcycle segment below 350cc. In its annual report for the 2026-27 fiscal year, India's largest two-wheeler manufacturer outlined demand trends in the premium motorcycle segment and the company's development plans for the 150-350cc premium motorcycle market.
The company's annual report shows that the premiumization process accelerated in the 2025-2026 fiscal year (FY26), with the premium motorcycle segment achieving 18% year-on-year growth, significantly outpacing the overall motorcycle market. The report attributes this growth to improved affordability in the sub-350cc segment following the Goods and Services Tax (GST) rate adjustment, which lowered the entry barrier, attracting first-time premium buyers and driving consumer upgrades. The company also plans to launch new products in the rapidly growing 250-350cc segment while continuing to strengthen its Premia store channel, aiming to become a key player in this premium market.
The company is expected to launch a larger-displacement, performance-oriented 421cc model in the Hero XPulse adventure series.
Regarding the motorcycle market above 350cc, the report notes that this segment faces headwinds. The revised GST rate, effective from April 1, 2026, classifies large-displacement models under the 40% "luxury" tax bracket, compared to the previous effective rate of approximately 31%. Most original equipment manufacturers (OEMs) have chosen to absorb the tax increase themselves to maintain market price stability. However, despite this, the segment remains sluggish compared to the booming 150cc-350cc "golden displacement" market. Currently, Hero has only two 440cc Harley-Davidson models in this above-350cc market.
Hero MotoCorp disclosed in its annual report that it has set aside a capital expenditure of 15 billion Indian rupees for the 2026-27 fiscal year to double electric vehicle (EV) production capacity and expand internal combustion engine (ICE) scooter and premium motorcycle manufacturing. The report added that while the premium two-wheeler industry continues to grow rapidly, Hero MotoCorp remains underrepresented in this segment, making winning in the premium market a key pillar of its business strategy.
