Hero MotoCorp To Launch New Premium 150-350 cc Products

Hero MotoCorp plans to introduce new motorcycles under both the Hero MotoCorp and Harley-Davidson brands in the current financial year, as it looks to strengthen its presence in the sub-350 cc premium motorcycle segment. In its annual report for FY 2026-27, India’s largest two-wheeler manufacturer has outlined changing trends in premium motorcycle segment as well as the company’s product plans in the 150-350 cc premium motorcycle segment.

Also Read: Hero XPulse 421 Spotted Testing At Khardung La

New Premium Products Planned

“Our premium journey centres on elevating the customer experience through Premia outlets and the launch of premium products under both the Hero MotoCorp and Harley-Davidson brands. We are also investing in enhancing product excellence to deliver a delightful premium experience to our customers. We plan to launch products in the fast-growing 250-350 cc segment, along with the continued build-out of the Premia channel and aspire to become a meaningful player in the premium category.

The company notes in its annual report that premiumisation gained momentum in FY 26 and will continue to outpace broader motorcycle market growth. The company is expected to launch a bigger and more performance oriented 421 cc model in its Hero XPulse adventure bike range.

“The premiumisation trend gained further momentum in FY 2025-2026, with the premium motorcycle segment growing by 18 per cent YoY, significantly outpacing the overall motorcycle market. The trend accelerated following the GST rate rationalisation, particularly in the sub-350 cc segment, where improved affordability lowered entry barriers, attracting first-time premium buyers and encouraging consumer upgrading,” the report noted.

Also Read: Hero Vida VX2 Plus With 4.4 kWh Battery Launched At Rs. 1.44 Lakh

Motorcycle Segment Above 350 cc Face Consolidation

However, motorcycle segments of above 350 cc continue to face headwinds, primarily owing to higher tax slabs, under the new GST rates which came into effect from April 1, 2026. While the sub-350 cc premium segments are witnessing acceleration, the segment for motorcycles exceeding 350 cc entered a period of relative consolidation. Currently, Hero only has the two 440 cc Harley-Davidson models in this segment above 350 cc.

Also Read: Harley-Davidson Sprint To Be Introduced Based On X440 Platform

“Under the revised GST structure, these high-capacity models were classified under a 40% ‘luxury’ slab, up from the previous effective rate of 31%. However, market prices in this category remained largely stable as most OEMs opted to absorb the tax hike, thereby shielding the buyers from price shocks. However, the segment remains sluggish compared to the booming 150 cc – 350 cc ‘sweet spot’, where the combination of advantages and product refreshes currently offer a more compelling value proposition for the modern Indian rider,” the report notes.

Also Read: 2026 Harley-Davidson X440T Review

More Investment For New Products

In its annual report, Hero MotoCorp has disclosed that the company has earmarked Rs. 1,500 crore for its planned capital expenditure in FY 2026-27, for doubling EV capacity and expansion of ICE scooters and premium motorcycles production.

While the premium two-wheeler industry has witnessed a sustained high growth, Hero MotoCorp remains under-represented in this segment. Hence, winning in the premium segment is a critical pillar of our business strategy,” the report added.