Hero MotoCorp settled a ₹4.80 crore lien imposed by the Employees' State Insurance Corporation (ESIC) on its bank accounts. The payment clears the hold directed by the regulator in Gurugram.

The company received the order on September 7, 2026, dated September 3, 2026. ESIC alleged failure to settle outstanding arrears of ₹3.19 crore under certificates from November 12, 2018. The total liability included interest and costs.

Regulatory Action Details

ESIC issued directions to banks where Hero MotoCorp maintains accounts. The orders instructed them to refrain from releasing funds up to ₹4.80 crore until further notice. The bank subsequently forwarded these communications to the company.

Company Response

Hero MotoCorp confirmed that the amount under the order stands paid. The management considers the orders unsustainable and unlikely to have a material impact on financials or operations. The company is filing appeals against the orders with relevant courts and appellate authorities.

Hero Motocorp reported total dispatches of 5,68,398 units in August 2026, up from 5,53,727 units in the same month last year. The figure missed market estimates of 590,000 units. The company recorded a 19% VAHAN retail growth, reflecting strong demand ahead of the festive season.

Sales performance at a glance

The following table summarises Hero Motocorp's August 2026 dispatch data against the prior-year figure:

While the year-on-year comparison reflects a volume increase, the company highlighted robust retail momentum across its domestic ICE and emerging mobility businesses.

Segment-wise performance

Hero Motocorp’s domestic ICE business recorded dispatches of 5,16,747 units with an 18% VAHAN retail growth. Key models like Splendor, Passion, Glamour X, and Super Splendor XTEC 2.0 maintained strong traction. In the scooter category, Destini and Xoom series led sales.

The Emerging Mobility unit, VIDA, sustained growth with 25,558 units dispatched and a 38% VAHAN growth. The brand launched the VIDA VX2 Go in the 3.1 kWh fixed battery variant. It also became the Title Partner of the VIDA Kovai Kings in the Tamil Nadu Premier League (TNPL).

Global business updates

The Global Business unit recorded dispatches of 26,093 units in August 2026. Hero Motocorp launched the XPulse 200 4V and XPulse 200 4V Pro in Bangladesh. Anuj Dua was appointed as Chief Business Officer – Premium Segment to drive growth in premium mobility.

What the Numbers Show

The divergence between overall dispatch growth and export volumes is notable. While total dispatches rose to 568,398 units, exports fell to 26,093 units from 34,588 units in August 2025. This suggests that the volume growth was primarily driven by domestic demand, which saw domestic dispatches rise to 542,305 units from 519,139 units year-on-year.