For thousands of buyers who had been postponing a two-wheeler purchase, the recent GST cuts came as a nudge they were waiting for. For Hero MotoCorp, that nudge translated into its highest-ever quarterly revenue, underscoring how sensitive demand in India’s two-wheeler market remains to prices.
The country’s largest two-wheeler maker said the quarter saw a clear turnaround in showroom activity, with improved affordability drawing customers back after years of subdued demand.
The GST reduction on two-wheelers lowered on-road prices across motorcycles and scooters, immediately improving buying sentiment. Dealers said foot traffic rose within weeks of the tax change, especially in smaller towns and rural markets, where even modest price cuts influence decisions.
For many households, the reduction tipped the balance in favour of buying now rather than later. Entry-level motorcycles, often the first big purchase for young earners or farming families, saw the most substantial traction. Industry executives noted that the tax relief helped convert cautious enquiries into confirmed bookings.
The timing also worked in Hero MotoCorp’s favour. The GST cuts coincided with the festive season, traditionally the strongest period for vehicle sales, amplifying the demand rebound.
Higher retail sales translated into higher volumes across Hero MotoCorp’s key models. Commuter motorcycles led the growth, while scooters benefited from a gradual recovery in urban demand as daily mobility normalised.
The volume uptick helped the company improve operating leverage, supporting margins even as it passed on the full tax benefit to customers. A steady product mix and cost controls further aided the bottom line, company executives said.
Faster inventory movement also brought relief to dealers, many of whom had been sitting on unsold stock amid weak demand over the past few years.
The record quarter marks a welcome shift for an industry that has faced prolonged stress from inflation, high fuel prices, and tighter household budgets.
Analysts say the GST-led boost has reset sentiment, but sustaining growth will depend on factors such as rural incomes, access to credit, and broader economic stability. For now, the mood on the ground is visibly better. Showrooms are busier, dealers are more confident, and manufacturers are cautiously optimistic.
Hero MotoCorp said it will continue to focus on competitive pricing, new launches, and deeper reach to ensure the recovery does not fade once the festive glow wears off.