Hero MotoCorp is rapidly losing its grip on the Indian two-wheeler market, with its share falling to an all-time low despite multiple product launches backed by the largest sales and service network among its peers.

Hero MotoCorp went from controlling half of India’s domestic two-wheeler market to less than a third, according to data from the Society of Indian Automobile Manufacturers (SIAM).

According to experts, failed attempts to capture market segments outside the entry-level bike category, such as commuter motorcycles and scooters, are responsible for the decline. Known for its fuel-efficient 100cc motorcycles, Hero has just 4% of the 125-200cc bike market and 21% of the market up to 125cc.

The company’s warhorse 100cc bike, the Splendor, still accounts for most of its sales. High-end category Heroes like the newly launched XPulse 200 4V, XPulse 200 T, Xtreme 160R, and Xtreme 200S aimed to lead the market but did not generate the desired response.

Also, competition in the 100cc segment is heating up. Hero’s partner-turned-rival Honda is making a new foray in this space, launching a 100cc variant of Shine, India’s most successful motorcycle brand. That could pose a severe threat to HMC, analysts said.

Fighting for leadership in the 125cc scooter segment, Hero has actually dropped to fourth place in the total scooter market behind Honda, TVS and Suzuki. Its share in the segment nearly halved from 11% in FY19 to 6% in FY24.

Hero MotoCorp, which has a portfolio of four scooters, including the recently launched Xoom, outsells one-eighth of Honda as of fiscal 2024. The domestic scooter market grew 16% through May, while Hero sales fell 8% over the same period.

TVS, Royal Enfield, and Suzuki seized on Hero’s declining market share. According to SIAM, domestic two-wheeler market shares TVS, Royal Enfield and Suzuki were 16%, 5% and 5% in FY24, compared to 14%, 4% and 4% in FY20.