Hero MotoCorp Plans ₹1,500 Crore Investment to Double Scooter Capacity

Hero MotoCorp, the country's leading two-wheeler manufacturer, has announced a significant capital expenditure plan of over ₹1,500 crore for the 2027 financial year. This investment is primarily focused on doubling the production capacity of its scooter segment, which has shown robust growth and high demand in recent months.

During a post-earnings call with analysts, Chief Executive Officer Harshavardhan Chitale shared that the capital infusion would address supply constraints for models currently experiencing strong market traction.

The company has already increased the manufacturing capacity of its Destini scooter by 50% and is now in the process of doubling the production capacity for the Xoom range. Hero MotoCorp currently maintains a monthly scooter volume of approximately 60,000 units, but with this fresh investment, it sets an ambitious target to reach nearly 1 lakh units per month.

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The investment strategy also places a heavy emphasis on electric mobility. Under its Vida brand, the manufacturer has already scaled its electric vehicle production from 15,000 units to 25,000 units per month. Management indicated that this capacity is slated to double once more before the end of the current calendar year to meet the rising interest in green mobility.

Furthermore, the company has committed an additional ₹700 crore to establish a second global parts centre in South India. This facility is intended to bolster the parts and accessories business, which remains a key revenue driver.

Regarding the broader market outlook, the company noted that retail demand remained steady through April and the first week of May despite geopolitical tensions in West Asia. While the industry expects high single digit volume growth for the 2027 fiscal year, the management remains cautious about evolving global uncertainties.

Nevertheless, the planned capacity expansion reflects the manufacturer's confidence in the long-term potential of the Indian two-wheeler market.