Hero flags CAFE norms as emerging risk; EV lag behind TVS and Bajaj deepens pressure
Hero MotoCorp warns proposed CAFE fuel-efficiency norms (from April 2028) will raise costs in its price-sensitive core, where 5.4M of 6M FY26 sales sit in the 75-125cc range. It trails on EV share (3% vs TVS 8%, Bajaj 12%), and plans lightweight parts plus EV expansion to mitigate. Shares are down 16% in 2026.
Hero MotoCorp flags proposed CAFE fuel-efficiency norms for two-wheelers (from April 2028) as an emerging business risk, warning of higher costs in a price-sensitive market. It plans to mitigate via lightweight components and expanding its EV portfolio, where it trails TVS and Bajaj.