The struggle of the massy Hero

Hero is a name synonymous with two-wheeler vehicles in India. Starting as a cycle seller in 1956, Hero MotoCorp became the largest motorbike manufacturer in the country, partly due to the iconic 'Splendor'. A household name, the company has so far sold over 10 crore units in its lifetime. Impressively, at its peak, the company had cornered 41 per cent market share. However, Hero's halo has dulled in recent years. The company has not only experienced a decline in volumes of about 2 per cent over the past decade but also seen its market share drop to 33 per cent in FY23. This downturn affects Hero MotoCorp's competitive standing in the industry and is also reflected in its financial performance. Currently, the company ranks at the bottom among its peers in terms of market cap. Financial race Comparing Hero MotoCorp's performance with peers Company Market cap (Rs cr) 10Y revenue growth (% pa) 10Y PAT growth (% pa) 10Y median ROCE (%) FY23 ROCE (%) Bajaj Auto 200,580 6.1 6.5 31.3 26.5 Eicher Motors 101,020 7.8 18.7 37.6 27.5 TVS Motor 95,564 14.3 21.5 17.6 14.1 Hero MotoCorp 87,855 3.1 2.9 43.4 23.9