Hero MotoCorp's New CEO Unveils Strategic Growth Vision
Harshavardhan Chitale, the recently appointed Chief Executive Officer of Hero MotoCorp Ltd, has identified premium products, scooters, electric vehicles, and exports as key areas with immense growth potential for India's largest two-wheeler manufacturer. In his first public remarks since assuming the role, Chitale emphasized these segments as critical to maintaining and expanding the company's market leadership.
Insights from Stakeholder Engagement
"I have undertaken extensive travel and engaged with a wide array of stakeholders, including dealers, suppliers, partners, and our internal team. These interactions have provided me with valuable insights into the factors that solidify our position as the industry leader," Chitale stated during an analyst call following the company's third-quarter earnings announcement. The discussion, which lasted nearly an hour, saw Chitale addressing queries on international operations, while senior executives like Vikram Kasbekar, Ashutosh Varma, Vivek Anand, and Kausalya Nandakumar handled domestic business questions.
Record Financial Performance and Growth Strategy
Hero MotoCorp reported a historic quarterly revenue of ₹12,784 crore for the October-December period, with profits surging 15% year-on-year to ₹1,275 crore. Chitale highlighted significant opportunities for growth and market share expansion, particularly in scooters, premium motorcycles, global markets, electric vehicles, and the parts and accessories business. His strategy involves premiumizing the product portfolio and accelerating expansion in the electric vehicle sector to defend against competitors like Honda and TVS. The company's premium offerings include the Xpulse, Xtreme, and Karizma series.
Leadership Transition and Industry Context
Chitale's appointment marks the third new CEO in India's automobile industry over the past six months, reflecting a broader leadership shift at major firms such as BMW and Hyundai Motor India. He succeeds Niranjan Gupta, who departed abruptly in April 2025 after less than two years in the role. Gupta's appointment was part of Hero MotoCorp's succession planning following Pawan Munjal's long tenure as CEO since 2001. After Gupta's exit, Chief Technology Officer Vikram Kasbekar served as interim CEO before Chitale was selected.
This leadership change is not isolated to Hero MotoCorp. TVS Motor Co. saw Sudershan Venu become chairman in 2025, while Bajaj Auto's Rishab Bajaj is gradually taking on leadership responsibilities in the electric vehicle segment. Venu aims to expand Norton, TVS's premium motorcycle business acquired in 2020, and Rishab focuses on the success of the Chetak EV.
Chitale's Diverse Professional Background
With a career spanning over three decades, Chitale brings a non-automotive background to Hero MotoCorp. He began at Tata Administrative Services before spending more than 16 years at Honeywell. He later served as CEO of HCL Infosystems Ltd and held leadership roles at Signify, including vice chairman and CEO. This marks his first role leading an automobile company, similar to his predecessor Gupta, who had experience at Unilever and Vedanta before serving as Hero MotoCorp's CFO for six years.
Focus on International Expansion
Chitale emphasized the importance of global markets, citing opportunities in Africa, Latin America, Europe, and new expansions in the Philippines. "The global market is a major area of focus. While we are expanding rapidly, there remains substantial room for growth, and we are committed to capitalizing on it," he said. Currently, the company's presence in international markets and electric vehicles is limited, but analysts note positive trends.
Nuvama Institutional Equities highlighted in a February 6 note that Hero MotoCorp is concentrating on the executive segment with new products like Glamor X, Destini 125, and Xoom 125, which have garnered favorable customer responses and boosted market share. The firm is well-positioned due to its extensive network and strong presence in the 100–125cc categories, with projected volume and revenue growth rates of 4% and 7% respectively from FY26 to FY28.
Market Performance and Outlook
Over the past year, Hero MotoCorp's shares have soared 36%, outperforming the Nifty Auto index's 18% rise. On Friday, the stock closed with a marginal gain of 0.35%, while the Nifty Auto index declined by 0.52%. This robust performance underscores investor confidence in the company's strategic direction under its new leadership.
