Hero MotoCorp to Invest Rs 1,500 Crore in FY27 for Scooters

Hero MotoCorp has announced a major investment plan for FY27 to expand scooter and electric vehicle production. The company will spend more than Rs 1,500 crore on manufacturing growth as scooter demand continues rising across India. Moreover, Hero MotoCorp is increasing production for popular models such as Destini and Xoom. The company is also investing heavily in its electric vehicle business and parts operations to support future growth across several business segments.

Hero MotoCorp to Expand Scooter Production

Hero MotoCorp plans to increase scooter production as demand grows steadily in different Indian markets. Currently, the company records monthly scooter sales of nearly 60,000 units across its product range. However, the company now expects volumes to move closer to one lakh units in coming months.

The expansion plan mainly focuses on popular scooter models including Destini and Xoom. Therefore, Hero MotoCorp has already increased Destini production capacity by nearly 50 percent recently.

“Harshavardhan Chitale: "We are investing in capacity expansion, and we have committed over Rs 1,500 crore of capex in FY27. And this capex is going to expand our capacity in scooters, where for some of our models that are doing very well, we are doubling our capacity,"

Xoom and EV Capacity to Grow Further

The company also confirmed plans to increase production capacity for the Xoom scooter significantly this year. In addition, Hero MotoCorp is expanding its electric vehicle manufacturing operations across India.

“Harshavardhan Chitale: "We are in the process of doubling our Xoom capacity."

According to the company, electric vehicle production capacity is already nearing another expansion phase. The company earlier increased EV production from 15,000 units to 25,000 units recently.

“Harshavardhan Chitale: "The company has gone from 15,000 units to 25,000 units and will further double that capacity before the end of this year."

Hero MotoCorp to Build New Parts Centre

Apart from vehicle production, Hero MotoCorp will also strengthen its parts and accessories operations. The company has committed more than Rs 700 crore for a new global parts centre in South India.

The new facility will support future business growth and improve supply operations across different markets. Moreover, the company expects the new centre to support rising demand for genuine parts and accessories.

“Harshavardhan Chitale: "We are also making significant investment in building up a second parts center, which is going to help in further expansion of our parts and accessories business. We have committed over Rs 700 crore of investment in building out a global parts center in South of India."

Company Monitoring Market Demand

Hero MotoCorp said demand remained stable during April and early May across several product categories. However, the company continues monitoring global developments linked to the West Asia conflict.

The company earlier expected high single-digit industry growth during FY27 before recent geopolitical tensions emerged. Hence, Hero MotoCorp believes future market conditions will depend on how the situation develops further.

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