Scooter Sales Drive March Surge
Hero MotoCorp's March 2026 vehicle dispatches climbed 8.84% year-on-year to 598,198 units, up from 549,604 units in March 2025. The increase was significantly boosted by a 53.18% surge in scooter sales, reaching 65,815 units. This acceleration, alongside a 24% rise in ICE scooter demand and 5% growth in motorcycle sales (532,383 units), signals broad demand recovery. Retail sales, based on VAHAN registrations (excluding Telangana), also rose 24%, indicating strong customer uptake, particularly in the 100-125cc segment.
Exports and EV Growth Expand Reach
Hero MotoCorp's global business recorded its highest-ever dispatches in March 2026, growing 16% to 45,693 units year-on-year. The full fiscal year 2026 saw about 40% dispatch growth in global operations, driven by its premium motorcycle and scooter offerings. Meanwhile, the electric vehicle brand VIDA reported a 154% surge in FY26 dispatches. In March 2026, VIDA achieved its highest monthly VAHAN registrations at 21,434 units, a 70% increase from February 2026.
Market Performance and EV Race
Hero MotoCorp's March performance occurred as the Indian two-wheeler market grew 29.7% in the first two months of 2026. Competitors also reported strong results: TVS Motor Company saw sales increase 25% to 519,358 units in March 2026, with domestic two-wheeler sales up 25%. Bajaj Auto reported approximately 3.8 lakh unit sales for March 2026.
The electric two-wheeler segment saw record sales of 190,941 units in March 2026, a 45% year-on-year rise. In March, TVS Motor led EV sales with 49,453 units, followed by Bajaj Auto (46,246 units) and Ather Energy (35,688 units). Hero Vida registered 21,434 EV sales in March, a 128% year-on-year increase. For FY26, TVS Motor led the EV market with 341,647 units, Bajaj Auto had 289,325 units, Ather Energy had 239,129 units, and Hero Vida recorded 138,558 units, according to one report. Another source indicated VIDA's FY26 dispatches were approximately 139,000 units, compared to 48,736 in FY25.
Challenges and Analyst Views
Despite strong March performance, challenges exist. Hero MotoCorp's reliance on the 100-125cc segment faces increasing competition from rivals and the rapidly evolving EV market. While VIDA's growth is notable, it trails behind leaders like TVS Motor in the EV segment. Potential risks include global geopolitical crises impacting crude oil supply chains, which could also accelerate EV adoption. Analyst sentiment is mixed. TipRanks suggests potential upside with a price target of ₹6,350. In contrast, Goldman Sachs maintained a 'Sell' rating with a price target of ₹4,370 in November 2025, citing trailing festive season growth compared to competitors. Hero MotoCorp's P/E ratio in March 2026 was approximately 17.9 to 19.39.
Outlook and Projections
Hero MotoCorp is projected to achieve annual earnings growth of approximately 7.7% and revenue growth of 8%, with EPS expected to increase by 7.6% annually. The company's Return on Equity is forecast to reach 25.5% within three years. Continued focus on its premium portfolio, global expansion, and the VIDA EV brand are key to navigating the evolving two-wheeler market. Brokerage targets vary, with some indicating price targets up to ₹6,350.