Mumbai: India’s largest two-wheeler maker Hero MotoCorp has planned a capital expenditure of Rs 1,500 crore for FY27 to expand its scooter production capacity.
The company’s CEO Harshavardhan Chitale said the investment will mainly focus on increasing production for scooter models that are seeing strong customer demand.
At present, Hero MotoCorp sells around 60,000 scooters every month. The company now aims to nearly double this number and move closer to a monthly production level of one lakh scooters.
Capacity Expansion for Popular Models
Hero MotoCorp has already increased the production capacity of its popular internal combustion engine (ICE) scooter model ‘Destini’ by 50 per cent.
The company is also working on doubling the production capacity of its ‘Xoom’ scooter model.
Management said the expansion plans are part of the company’s larger strategy to strengthen its position in the growing scooter segment.
Electric Vehicle Production Also Increasing
The company is also increasing production capacity for electric vehicles (EVs).
According to Chitale, Hero MotoCorp is close to completing an expansion that will raise EV production capacity by around 50 per cent compared to the previous quarter.
The company has already increased EV production from 15,000 units to 25,000 units and plans to double this capacity again before the end of the year.
Rs 700 Crore Investment in Parts Centre
Apart from vehicle production, Hero MotoCorp is also investing heavily in its spare parts and accessories business.
The company has committed over Rs 700 crore to build a global parts centre in South India.
The new facility is expected to improve supply chain operations and support future growth in parts and accessories sales.
Demand Remains Stable Despite Global Tensions
Commenting on the impact of rising tensions in West Asia, Chitale said demand for two-wheelers remained stable during April and the first week of May.
Before the conflict started, the two-wheeler industry was expecting high single-digit growth in FY27. However, the company said the changing global situation and uncertainty will need close monitoring in the coming months.
