Hero MotoCorp Sees Leadership Shake-Up Amid Stock Volatility
Hero MotoCorp shares rose by up to 2% on March 20, 2025, despite concerns over multiple senior-level resignations, including HR Head Sameer Pande and four others. Earlier, CEO Niranjan Gupta had also resigned, with Vikram Kasbekar set to take over as Acting CEO from May 1, 2025. Meanwhile, reports of a potential joint venture with SchmiedeTechnik have prompted stock exchanges to seek clarification. Hero MotoCorp may also face exclusion from the Nifty 50 index, possibly being replaced by Interglobe Aviation. The company’s stock has declined 20% over the past year and 41% in the last six months.
Governance concerns that had been under investigation since 2023 were dismissed by the Ministry of Corporate Affairs. The stock recently hit a 52-week low of ₹3,462, down 43% from its peak in September 2024. The leadership exits come after a town hall where Executive Chairman Pawan Munjal stressed performance accountability. At the same time, rising competition from Honda and TVS has pushed Hero MotoCorp further down the market rankings. Additionally, the company’s total sales dropped by 17% last month compared to the previous year. As a result, Hero MotoCorp is grappling with internal restructuring while facing challenges in retaining its market leadership.
Hero MotoCorp Sees Leadership Shake-Up Amid Stock Volatility
Hero MotoCorp, one of India’s leading two-wheeler manufacturers, has been in the spotlight recently due to stock market fluctuations and internal changes. On March 20, 2025, the company’s shares rose by 2% during trading, reaching a high of ₹3,603.25 per share. By the end of the session, the stock was up 1.6%, closing at ₹3,592.35. This gain comes despite ongoing concerns over senior-level resignations and corporate challenges.
Reports indicate that several top executives have resigned, including Sameer Pande, the HR Head for Talent Management, along with four other senior officials. While these resignations are yet to be officially confirmed, they briefly caused the stock to drop by 0.78%. Earlier this year, CEO Niranjan Gupta announced his resignation, effective April 30, 2025. Following his departure, Vikram Kasbekar, Executive Director of Operations, will serve as Acting CEO starting May 1, 2025.
Adding to the uncertainty, there are speculations about a potential joint venture with SchmiedeTechnik, prompting stock exchanges to seek clarification from Hero MotoCorp. Furthermore, analysts at Nuvama Alternative suggest that Hero MotoCorp might be removed from the Nifty 50 index, with InterGlobe Aviation (IndiGo’s parent company) emerging as a potential replacement due to its strong fourth-quarter financial performance.
Hero MotoCorp’s stock has faced significant pressure over the past year, declining by 20%, with a year-to-date drop of over 13%. The stock recently hit a 52-week low of ₹3,462 on March 17, 2025, marking a steep 43% fall from its 52-week high of ₹6,246 in September 2024.
The company has also faced scrutiny over corporate governance issues since 2023. However, earlier this month, reports suggested that after nearly two years of investigation, the Ministry of Corporate Affairs (MCA) found no evidence of governance violations or financial misconduct.
Despite these challenges, Hero MotoCorp remains a key player in India’s two-wheeler market. However, the recent wave of senior-level departures has raised concerns. Among those who have resigned are Reema Jain (Chief Information & Digital Officer), Swadesh Srivastava (Chief Business Officer for Emerging Mobility), Dharm Rakshit (Head of HR), and Chandrasekar Radhakrishnan (Head of Business Growth for Emerging Mobility). These exits follow the earlier resignations of CEO Niranjan Gupta and Chief Business Officer Ranjivjit Singh in February.
Sources suggest that some of these executives were initially hired by Gupta and Singh, which may have influenced their decisions to leave. The leadership shake-up comes after a company-wide town hall on February 14, where Executive Chairman Pawan Munjal addressed around 5,000 employees, emphasizing that underperformance would not be tolerated.
Hero MotoCorp is also facing intense competition in the market. Recently, Honda Motorcycle and Scooter India overtook Hero as the country’s top two-wheeler seller. Additionally, TVS Motor Company has surpassed Hero MotoCorp in total sales, including exports and electric vehicles, pushing Hero down to third place. The company’s total sales dropped by 17% last month compared to the same period last year, compounding its struggles with declining market share and internal restructuring.
In summary, Hero MotoCorp is navigating a challenging phase marked by senior-level resignations, stock market volatility, and growing competition. While the company has shown resilience with recent stock gains, the road ahead remains uncertain as it works to address internal challenges and regain its standing in the highly competitive two-wheeler market.