Hero Motocorp , India's leading two-wheeler manufacturer, has received a tax demand order from the Deputy Commissioner, State Tax, Lucknow, Uttar Pradesh. The order, which pertains to the financial year 2021-22, raises concerns over the company's Input Tax Credit (ITC) claims.

Tax Demand Details

Allegations by Tax Authority

The tax demand is based on two primary allegations:

1. Excess claim of Input Tax Credit (ITC) due to a mismatch between GSTR-2A/2B and GSTR-3B forms.
2. Incorrect claim of blocked ITC under Section 17(5) of the Central Goods and Services Tax Act (CGST Act) and Uttar Pradesh Goods and Services Tax Act (UPGST Act).

Company's Stance

Hero MotoCorp has stated that, according to their assessment, the tax demand is not maintainable in law. The company believes that the ITC has been rightfully claimed and intends to take appropriate steps, including filing an appeal against the order.

Impact on Operations

The company has assured stakeholders that there will be no material impact on its financials, operations, or other activities as a result of this tax demand.

Next Steps

Hero MotoCorp is expected to file an appeal against the order. The company's response to the tax demand reflects its confidence in its tax compliance practices and its commitment to addressing regulatory concerns through appropriate legal channels.

As this situation develops, investors and stakeholders will likely keep a close eye on the appeal process and any potential implications for the company's financial statements.

Hero MotoCorp , the world's largest manufacturer of motorcycles and scooters, has reported impressive growth figures for November 2025, showcasing strong performance across its product lines and markets.

Key Highlights

Strong Domestic Performance

Hero MotoCorp's robust growth in November 2025 was driven by several factors:

• New Model Launches: The company's new models, including the Xtreme125R and GlamourX125, have received strong customer acceptance, contributing to increased sales.
• Market Demand: Both rural and urban markets showed strong consumer sentiment, supporting the company's growth trajectory.
• Festive Season Impact: The company successfully capitalized on the continued festive season momentum, leading to higher sales figures.

Electric Vehicle Segment Growth

VIDA, Hero MotoCorp's electric vehicle arm, demonstrated significant progress:

• Achieved 66% year-on-year growth in VAHAN registrations
• Secured a 10.4% market share in the electric two-wheeler segment
• The VIDA V1 scooter continues to drive retail growth and sales volume

Global Business Expansion

Hero MotoCorp's international business showed remarkable growth:

• Exports increased by 70% compared to the same period last year
• Strong demand for models like Hunk 125R, Hunk 160R, and Eco Series in Latin America
• Growing popularity of the Hunter Series in Africa
• Expansion into European markets with Euro 5 compliant models

The company's ability to meet diverse demand across segments and its agility in responding to market dynamics have contributed to its strong performance. Hero MotoCorp continues to focus on product innovation, premiumization, and expansion of its electric and international portfolio to drive growth.

This performance by Hero MotoCorp reflects the overall positive sentiment in the two-wheeler market, supported by favorable macroeconomic conditions and revival in rural ownership and spending. The company's strategic focus on both domestic and international markets, coupled with its push into the electric vehicle segment, positions it well for continued growth in the evolving automotive landscape.