Hero Motors Listing: Decoding EV Growth, Premium Share And Key Risks

Hero Motors has a differentiated business model focused on premium and performance-oriented products, with scope for customisation through direct customer engagement. However, revenue growth has lagged peers during FY24-FY26, while a higher contribution from the lower-margin aftermarket and maintenance business weighs on margins. The company has opportunities in electric vehicles, which account for 23% of its business and more than 40% within its powertrain segment. It is also expanding into newer areas such as aerospace. Key risks include continued slow growth in European markets and the possibility that growth in the higher-margin powertrain business does not recover.