Hero MotoCorp Set to Expand 150-350cc Lineup with New Premium Motorcycles

Hero MotoCorp has shared its plan to launch new motorcycles in the 150-350cc segment in the coming years. The company wants to grow its presence in this popular category, which many buyers now prefer. As per its FY26 report, Hero will introduce new models under both its own brand and the Harley-Davidson partnership in FY2026-27.

Why the 150-350cc Segment Is Growing Fast?

The 150cc bikes to 350cc motorcycle segment has become the fastest-growing category in India. Many riders now look for bikes that offer better performance, modern features, and stylish design. In addition, this segment gives a good balance between power and price, which attracts both young buyers and experienced riders.

Hero MotoCorp said this segment grew by 18% in FY26, which is much higher than the overall motorcycle market. Perhaps one of the biggest reasons behind this growth is the change in GST rates. The government reduced the GST to 18% for bikes under 350cc. Because of this, buyers now find these bikes more affordable.

GST Changes Help Buyers Upgrade

The GST reduction has made a big difference in the market. Earlier, higher taxes made premium bikes costly. However, with lower GST, more people now choose mid-range premium bikes instead of entry-level models.

As a result, many companies have started focusing on this segment. They now design bikes that fit under the 350cc limit to keep prices competitive. This strategy helps them attract more customers.

Other Brands Also Shift Strategy

Hero MotoCorp is not alone in this shift. Other companies have also changed their plans to match this trend. Bajaj Auto also introduced a new 350cc engine by adjusting its older 399cc platform. Similarly, Triumph launched 350cc versions of its 400cc bikes with slightly lower power but better pricing.

KTM has also followed this path by bringing 350cc versions of its popular 390 Duke and Adventure models. In addition, Bajaj updated bikes like the Pulsar NS400Z and Dominar 400 to fit under 350cc. This move helped reduce prices and made these bikes more attractive to buyers.

Bikes Above 350cc Face Slower Growth

While the 150-350cc segment grows fast, bikes above 350cc show slower growth. The main reason is higher GST, which now stands at 40% for these bikes. Earlier, the tax rate was lower, so prices were more reasonable.

However, companies have tried to manage this issue by absorbing some costs instead of increasing prices too much. Still, buyers now prefer more affordable options in the sub-350cc category.

Hero MotoCorp’s Strong Performance in FY26

Hero MotoCorp has also reported strong business growth in FY26. The company sold 6.5 million units across petrol and electric vehicles. This marks a 9.7% increase compared to last year.

In addition, the company’s revenue grew by 14.9% to Rs. 46,830 crore. Its profit also increased by 14.3%, reaching Rs. 5,268 crore. These numbers show that Hero continues to lead the two-wheeler market.

Challenges Faced During the Year

Despite strong growth, Hero faced some challenges. The company dealt with shortages of important materials like semiconductors and rare earth magnets. In addition, rising raw material costs and global issues also created pressure.

However, Hero continues to invest in new products and better distribution. The company also focuses on building a strong premium image in the market.

What to Expect Next?

Looking ahead, Hero MotoCorp plans to launch several new models in the 150-350cc segment. These Hero bikes may come with modern features, better performance, and fresh designs. Moreover, the partnership with Harley-Davidson could bring more exciting Harley-Davidson bikes for buyers. 

In conclusion, the Indian motorcycle market is clearly shifting towards premium yet affordable bikes. With strong demand and smart strategies, Hero MotoCorp aims to stay ahead in this growing segment.

Before you go, don’t forget to check out the Hero Launches Vida VX2 Plus 4.4kWh Variant in India