Hero MotoCorp Ltd

Dear Shareholders,

I am delighted to present to you our Annual Review for FY 2024-25.

India's confident march towards global leadership inspires us at Flero MotoCorp to play our part - as enablers of mobility and partners in national progress.

We are witnessing the rise of a New India -where ancient wisdom meets modern innovation, where sacrifice stands tall beside success, and where courage, compassion and conviction drive a relentless pursuit of excellence.

At Hero, we do not just build machines - we build movement. Movement that powers dreams, connects people, and drives change. As India rises, we rise with her, carrying forward the values of dignity, strength and service. 'Nation First' is not just a slogan for us; it is our identity.

For 24 consecutive years, we have been the world's largest manufacturer of motorcycles and scooters. With over 124 million customers across 48 countries, our impact is both wide and deep. But beyond numbers, our true legacy is the trust we have earned, the lives we have touched and empowered, and the future we continue to shape.

This legacy was founded by our beloved Founder & Chairman Emeritus, Dr. Brijmohan Lall Munjal, our Hero Forever, a visionary who laid the foundation of your Company on purpose. A Company that would uplift communities, build opportunities and define the future of mobility. That vision lives on in every innovation we pioneer every partnership we forge and every life we touch. Because nation-building is not justa chapter in ourjourney - it is in our heritage, our purpose and our future.

FY 2024-25 has been a landmark year - for India and for Hero MotoCorp.

Under the leadership of our Hon'ble Prime Minister Shri Narendra Modi, now in his historic third term, India has accelerated across sectors - from infrastructure and energy to Al, defence and space. As perthe IMF, GDP growth in FY 2024-25 was 6.2% and FY 2025-26 will be 6.3%, further validating India's trajectory as a global growth engine.

Strategic reforms like PM Gati Shakti, PLI schemes and Digital India have turned India into a magnet for innovation and global capital.

Hero MotoCorp's performance mirrors this progress. In our 41^st year, we delivered 5.9 million vehicles - a testament to the trust of our customers and our deep commitment to India's aspirations. Our strong financials reflect not just commercial success, but our role in powering India's journey to becoming Viksit Bharat.

We are not only growing; we are helping shape a more sustainable, inclusive and resilient India.

Our culture is anchored in values: Integrity, Passion, Courage, Respect, and Being Responsible. These aren't mere words - they guide our decisions, power our products and define our people.

We are a performance-driven, purpose- led organisation - one that believes in shared leadership, diversity of thought, and inclusive growth. In a fast-evolving world, we are not reacting to change - we are shaping it. Our organisational evolution reflects this intent, aligning talent, technology and ambition to lead with purpose at a global scale.

It is a matter of distinct honour that our endeavours continue to earn recognition on the global stage. TIME has once again accorded us a place of prestige-first among the World's Best Companies and now as the sole Indian two-wheeler marque in the Best Companies in Asia-Pacific 2025. This distinction underscores not only our steadfast commitmentto human-centric values and financial stewardship but also to a sustainability ethos that guides every facet of our enterprise.

Equally noteworthy is our consecutive recognition as one of ET NOW's Best Organisations for Women for three successive years-a clear affirmation of our unwavering resolve to shape a workplace that is inclusive, progressive and firmly attuned to the aspirations of tomorrow.

Innovation at Elero MotoCorp is a commitmentto Bharat's future - uplifting communities, creatingjobs, and enabling a cleaner tomorrow.

With over 117,000 registered startups and 80 new ventures emerging daily, India has become a global innovation powerhouse. Through our own platforms, including the Hero for Startups initiative we are mentoring next-generation entrepreneurs, offering them R&D access and opening pathways to market.

This year, we advanced our leadership in electric mobility:

• VIDA, our electric mobility marque, recorded a 200% surge in sales, supported by the strategic expansion of its retail presence across key urban centres. The VIDA V2 has redefined accessibility in electric mobility for the modern commuter.

• VIDA Aero, an inventive design concept where the bike evolves with the child, was honoured with the prestigious Red Dot Award: Design Concept 2025, reinforcing our commitmentto design leadership and future-forward thinking.

• A bold global expansion roadmap will see Hero MotoCorp extend its presence into Germany, France, Spain, and the United Kingdom in the second quarter of FY 2025-26, as we carry our vision of mobility without boundaries to new markets.

• Our partnership with Ather Energy, now a publicly listed company, strengthens India's largest EV charging network and premium electric segment leadership.

• We made a strategic Rs. 510 crore investment in Euler Motors, reinforcing our presence in the global-leading¹ electric three- wheeler space.

• Our partnership with California- based Zero Motorcycles is culminating into an exciting new premium motorcycle.

Each step reaffirms our belief: the future of mobility in India will be electric, inclusive and innovation- led. Hero MotoCorp is proud to lead this transformation.

FY 2024-25 saw a vibrant evolution in our product lineup, aligned with the aspirations of both Bharat and the world.

• We elevated our premium motorcycle portfolio with the launch of Xtreme 250R and Xpulse 210, redefining performance and adventure.

• Our scooters, including the Hero Destini 125, Xoom 125, and Xoom 160, added innovation and energy to urban mobility.

• The Harley-Davidson X440, a joint offering, continued its strong market run. We are now expanding this collaboration with new platforms that set global benchmarks.

• In the 125cc segment, the Xtreme 125R gained strong traction.

• In the 100cc category - the bedrock of our legacy - we sustained leadership with upgraded offerings and consistent value.

Together, these launches reflect our clear strategy: meet evolving customer needs, stay ahead of trends and redefine mobility for every rider.

Since the launch of'Make in India' in 2014, Hero MotoCorp has played a central role in India's global manufacturing journey.

In FY 2024-25, we achieved 43% YoY growth in international markets - from South Asia to Latin America - through a sharp focus on customer experience, quality and scale. Our entry into Europe and the UK later this year marks the next phase in our global ambition - backed by engineering excellence and innovation.

Hero MotoCorp today is more than an Indian icon. We are a confident, global company redefining mobility across continents.

FY 2024-25 underscored our deep commitment to sustainable growth and positive global impact.

• We fortified our water stewardship, achieving an exceptional 500% water positivity-well ahead of industry norms.

• We reached 95% product recyclability, surpassing the Automotive Industry Standard (AIS) 129 benchmark of 80%, setting new standards for circularity in mobility.

• Our steady shift towards renewable energy enabled us to achieve 45% carbon neutrality in FY 2024-25, marking a decisive step on our low- carbon journey.

• Sustainability extended across our value chain, with 30% of our channel partners embracing Green Dealership practices, collectively generating 7.1 MWp of solar capacity across our dealership network.

• We advanced our people agenda by accelerating efforts to hire, develop, and empower more women, reinforcing our aspiration to achieve 30% women representation by 2030.

• Our sustainability journey reached a defining milestone as we became the only Indian two-wheeler company to be included in both the Dow Jones Sustainability Index (DJSI) World and DJSI Emerging Markets, affirming our leadership in responsible business.

• Our Gurugram manufacturing facility earned the prestigious Sword of Flonour from the British Safety Council, recognising excellence in workplace health, safety and well-being.

Under the banner of 'Hero We Care', our Corporate Social Responsibility initiatives touched the lives of over 847,000 individuals, reaffirming our deep-rooted commitment to social upliftment:

• Through'Ride Safe India', a nationwide campaign to foster responsible riding behaviour, we reached close to 3,00,000 beneficiaries with targeted road safety programmes.

• We advanced access to education for the underprivileged via remedial learning centres and scholarships in collaboration with Brijmohan Lall Munjal University (BML), helping young minds realise their full potential.

• Our Mobile Medical Units extended critical healthcare services to underserved communities, benefitting more than 1,20,000 individuals who would otherwise remain beyond the reach of essential care.

• We stood by the families of army veterans and martyrs through the Veerangana Sewa Kendra (VSK)-a dedicated hotline operated by war widows-providing counselling, access to government support, and a compassionate lifeline to those who have served the nation.

• Through Project Saksham, we empowered more than 4,000 women in FY 2024-25 with skills to become two-wheeler technicians- an initiative that transcends skilling to promote diversity, opportunity, and inclusive growth. Ourambition remains steadfast: to empower 100,000 women over the next five years.

At Hero MotoCorp, our commitment to multidisciplinary sports reflects a deeper belief - that excellence, resilience, and unity transcend boundaries. Sport is a powerful force that brings people together, celebrates human potential and inspires a generation to dream bigger. Through our sustained support, we aim to provide Indian athletes with platforms that match their ambition and reflect the spirit of a truly sports- loving nation.

At the 2024 Tokyo Paralympics, young para-archer Sheetal Devi (17) earned a bronze in the mixed team compound event, while Sundar Singh Gurjar claimed bronze in the men's javelin throw. Their triumphs are a testament to the indomitable spirit of human endurance. We are proud to stand behind such remarkable athletes through our CSR partnership with the Paralympic Committee of India.

Our own Hero MotoSports Team Rally etched its name in history by clinching the FIM Rally-Raid World Championship in 2024, a moment of immense pride for both India and Hero. Led by a dynamic, young team, this victory highlighted not only world-class sporting talent but also the strength, reliability, and engineering excellence of Hero products on the toughest terrains in the world.

In support of India's national sport, we signed a five-year global partnership with the International Hockey Federation (FIH) reaffirming our commitment to take Indian hockey to greater global heights.

In the world of golf, we celebrated a decade of The Hero World Challenge, a premier PGATOUR event hosted by our Global Corporate Partner, Tiger Woods - a partnership that continues to spotlight India's growing stature in global sport.

Through sport, as in business, we pursue excellence with purpose not justto win, but to uplift, inspire, and unite.

FY 2024-25 was a year of action, ambition, and acceleration. Flero MotoCorp enters the next phase with confidence in our purpose and pride in our nation.

To our customers, employees, partners and shareholders - thank you for your trust, your belief, and your partnership. Together, we are not merely building mobility solutions - we are pioneering the future of mobility: sustainable, inclusive and proudly made in India, for the world.

Wishing you continued prosperity, purpose, and well-being.

Warm Regards

Executive Chairman, Flero MotoCorp