India’s largest two-wheeler maker, Hero MotoCorp, is facing a significant shake-up at the executive level with several key resignations, raising concerns about its competitive position in the market.
Reports indicate that at least six senior executives have left the company in recent days, among them Reema Jain, the Chief Information and Digital Officer, and Sameer Pande, the HR Head for Talent Management. This wave of resignations has followed a month after Pawan Munjal, the Executive Chairman, issued a clear message during a town hall meeting held on February 14, 2025. "I have my eyes on each one of you," he warned, signaling a zero-tolerance policy for underperformance among the company’s approximately 5,000 global employees.
The exits include notable figures such as Swadesh Srivastava, the Chief Business Officer of Emerging Mobility at Vida and Chair of the Innovation Council, and Dharm Rakshit, who headed HR and culture change. Their departures come in the wake of earlier exits this past February by CEO Niranjan Gupta and Chief Business Officer Ranjivjit Singh, which many insiders have described as a precursor to these recent shifts.
According to industry analysts, the current leadership transitions at Hero MotoCorp reflect a broader struggle within the organization. The company has recently lost its top market position to its rival, Honda Motorcycle and Scooter India, which surpassed Hero in the cumulative sales of two-wheelers. For the first time, Hero also found itself overtaken by TVS Motor Co, which sold 403,976 units in February compared to Hero’s 388,068 units. This drop in sales has been alarming, marking a 17% year-on-year decline in total dealer dispatches.
Although Hero MotoCorp has reported a 12.1% rise in net profit for the third quarter of FY25—totaling Rs 1,202.8 crore—this financial boost has not alleviated concerns about its declining market share amidst increasing competition. The company’s failure to innovate and adapt quickly may be contributing factors to its current woes.
In a statement addressing the situation, a spokesperson from Hero MotoCorp commented, "Misrepresenting normal workforce shifts as anything else is misleading and does not reflect the reality of our operations. Individual people movements or exits are a part of operations in a large, dynamic organization like ours. Other than statutory requirements, we do not comment on individual people movements." This clarification seems an effort to contain potential worries within the ranks about the scale and implications of these resignations.
However, the stock market response to these executive departures has been cautious. Following the reports of resignations, Hero MotoCorp shares dipped nearly 1%, reaching Rs 3,527.85, with the stock suffering a decline of 3% over the last five days. The situation has been exacerbated, with the shares down 41% since their 52-week high of Rs 6,246, which was recorded in September 2024.
The cascade of resignations and the sector's heavy competition may only be the beginning of deeper issues facing Hero MotoCorp, experts warn. Additional resignations among senior leadership have been suggested as possible outcomes in light of ongoing pressures from the market and internal restructuring efforts.
In summary, while Hero MotoCorp's recent gross profit figures display resilience, the company's long-term health and competitive standing remain under question given the current leadership overhaul and the intense competition in the two-wheeler market. How the company adapts to these challenges will likely shape its future.
