Hero Motocorp expects Scooter segment to outspace Motorcycles in 2027

Hero MotoCorp anticipates that the scooter segment will grow faster than motorcycles in the financial year 2027. The overall two-wheeler industry is expected to see a moderate to high single-digit expansion. But Hero forecasts that scooters will grow by several percentage points more than motorcycles. This growth is driven by two main factors. First, urbanisation means more people are moving to cities where scooters are easier to park and manoeuvre. Second, the expanding gig economy means more delivery riders on apps like Zomato and Swiggy prefer scooters for their low running costs and ease of use.

To take advantage of this shift, Hero MotoCorp has planned a large investment. The company has set aside more than ₹1,500 crore for capital expenditure in the financial year 2027. This money will be used to expand manufacturing capacity. For the Destini scooter, production capacity has already been increased by 50%. For the Xoom scooter, the company is currently in the process of doubling manufacturing capacity. For electric vehicles under the VIDA brand, EV manufacturing capacity is set to rise by 50% in the immediate term, with plans to double it by the end of 2026.

The aggressive push aims to help Hero regain lost market share in the scooter segment. In recent years, rivals like TVS Motor Company and Suzuki Motorcycle India have gained share. Hero wants to win back that share with higher production and new models.

There are three key growth drivers for 2027. The first is “scooterisation.” Urban migration and the rise of e-commerce and delivery services continue to fuel demand for scooters over traditional commuter motorcycles. More people living in cities means more demand for small, agile, and efficient scooters. The second is a premium push. Beyond entry-level models, Hero is planning a series of “impactful launches” across premium motorcycles and higher-displacement scooters. This means bigger, more powerful scooters for customers who want more performance. The third is EV profitability. Hero aims to achieve a six-fold jump in monthly EV sales to reach profitability in its electric business by 2027. That means they want to sell six times more electric scooters per month than they do now.

As of May 2026, Hero has already seen early momentum. Scooter volumes grew 48% year-on-year in the previous fiscal year. That is significantly higher than the 6.6% growth seen in motorcycles. This shows that the shift to scooters is already happening.

If you are thinking of buying a two-wheeler in 2027, you should consider a scooter if you live in a city, if you need a vehicle for daily commuting, or if you work in delivery services. You should also consider Hero scooters because the company is investing heavily in new models, higher production capacity, and electric options. The VIDA electric scooters will have much higher production capacity by the end of 2026, so availability will improve. The Destini and Xoom petrol scooters will also be more readily available.

You should consider TVS or Suzuki scooters if you prefer their designs or if you have a dealership closer to your home. But Hero is clearly planning to fight back strongly in the scooter segment with massive investment and new launches.