Hero MotoCorp and Bajaj Auto are offsetting declining petrol-powered vehicle sales by significantly expanding their presence in the electric two-wheeler market. Bajaj Auto leads the EV segment with over 25% share, while Hero MotoCorp has doubled its EV market share to 12.33%. Both companies are aggressively ramping up production capacity to meet surging demand, a trend not shared by rivals like TVS Motor Company and Honda.
The automotive landscape is shifting rapidly, with traditional giants Hero MotoCorp and Bajaj Auto finding a crucial buffer in the burgeoning electric vehicle (EV) market. As their legacy petrol-driven segments experience steady erosion of market share, both companies are leveraging their EV offerings to cushion the impact and capture new growth.
EV Dominance Grows
Bajaj Auto, based in Pune, has established a strong foothold in the domestic electric two-wheeler market, securing over a quarter of the share at 25.21% in the four months leading up to July. Competitor Hero MotoCorp has also seen substantial growth, doubling its market share to 12.33% within the same period. This surge comes as Bajaj Auto's petrol motorcycle market share dipped to an all-time low of 13.4% in the same four-month period, down from nearly 17% in FY25. Similarly, Hero MotoCorp's share in the traditional petrol-powered segment fell to 27.45% from 28.61% at the end of FY25.
Capacity Expansion Underway
This contrasting trend highlights a divergence in market performance. While Hero MotoCorp and Bajaj Auto are gaining ground in EVs and losing out in petrol, TVS Motor Company has managed to grow its market share in both segments. Honda, the second-largest two-wheeler maker in India, has seen market share decline across both petrol and electric categories.
The Indian electric two-wheeler segment is projected by Crisil Ratings to reach approximately 1.7 million units by FY27, with an annual growth rate of 16-18%. This significantly outpaces the 3-8% growth expected for the overall domestic two-wheeler market. Hero MotoCorp's CEO, Harshavardhan Chitale, noted minimal inventory of electric two-wheelers, indicating strong consumer demand. The company is tripling its EV production capacity, aiming for 45,000 units per month by the end of the fiscal year. Bajaj Auto is also boosting Chetak production to 60,000 units monthly and is exploring new plant options to meet demand, aiming to challenge TVS Motor Company for the top EV spot.