Hero MotoCorp Struggles in Scooter Market Despite Aggressive Launch Strategy Competitors continued to gain ground in the same month. Bajaj Auto reported a 73.2 per cent increase in April scooter sales, TVS rose 23.5 per cent, and Suzuki climbed 9 per cent.

By Entrepreneur Staff

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Freepik

Hero MotoCorp, one of India's top two-wheeler manufacturers, is grappling with a surprising downturn in scooter sales in FY25, even as the broader scooter segment recorded double-digit growth. According to data from the Society of Indian Automobile Manufacturers (Siam), Hero's scooter sales dropped by 2.3 per cent, slipping from 4,00,453 units in FY24 to 3,91,419 in FY25.

This slump stands in stark contrast to the 17.4 per cent growth the overall scooter market experienced during the same period, with rival manufacturers making strong gains. Bajaj Auto saw its scooter volumes surge by 139.7 per cent to 2,77,183 units, while Honda Motorcycle & Scooter India (HMSI) posted a 12.4 per cent rise, reaching 2.84 million units. TVS Motor and Suzuki Motorcycle India also logged notable growth at 24.9 per cent and 14.8 per cent, respectively.

Hero's decline comes despite the company's aggressive strategy of launching several new scooter models. The Xoom 110 debuted in January 2023, followed by the Destini 125 Prime in August 2023 and the Pleasure Plus Xtec Sports in March 2024. In January 2025, Hero introduced three more models—the Destini 125, Xoom 125, and Xoom 160. But the expanded portfolio has not translated into lasting traction in the market.

While the new models briefly lifted Hero's scooter sales—showing 34.9 per cent growth in January 2025, 12.1 per cent in February, and 22.5 per cent in March—the momentum was short-lived. By April 2025, sales plummeted 43.3 per cent year-on-year, from 31,712 units to 17,978. Though the steep drop is partly due to a high base effect, the result remains starkly out of sync with the broader industry trend.

Competitors continued to gain ground in the same month. Bajaj Auto reported a 73.2 per cent increase in April scooter sales, TVS rose 23.5 per cent, and Suzuki climbed 9 per cent. Even Ather Energy, the electric scooter company in which Hero has invested, grew its volumes by 44 per cent, delivering 155,405 units.

With total scooter sales rising to 6.85 million in FY25, up from 5.84 million in FY24, and motorcycles growing at a slower pace of 5.1 per cent, the market signals a clear consumer pivot toward scooters.

Entrepreneur Staff

Entrepreneur Staff

Editor

For more than 30 years, Entrepreneur has set the course for success for millions of entrepreneurs and small business owners. We'll teach you the secrets of the winners and give you exactly what you need to lay the groundwork for success.
Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

Amazon Tells Thousands of Employees to Relocate or Resign

Amazon says the move to bring teams together will make them more "effective."

Growing a Business

How to Stop Overthinking and Start Moving Your Business Forward

Business success requires quick decision-making — not long, drawn-out consensus-building. The risk isn't as great as you think, so make a decision and get moving.

Business News

'Largest Data Breach in History': Apple, Google, and Meta Passwords Reportedly Among 16 Billion Stolen in Massive Hack

"Massive datasets" have been emerging every few weeks, according to a new report.

Business Ideas

91 Service Business Ideas to Start Today

Get started in this growing industry, with options that range from IT consulting to childcare.

Growing a Business

Successful Entrepreneurs Are Strategically Outsourcing These 5 Tasks

Strategic outsourcing is a way for busy entrepreneurs to reclaim valuable time and avoid burnout, allowing them to focus on core activities that drive real business growth.