Two-Wheeler Giant Announces Rs 1,500 Crore Expansion Plan

India’s leading two-wheeler manufacturer Hero MotoCorp has announced plans to invest Rs 1,500 crore in capital expenditure during FY27 to expand its scooter production capacity.

Speaking to analysts, the company’s CEO Harshavardhan Chitale said the investment will primarily be directed towards increasing manufacturing capacity for scooter models that are witnessing strong market demand.

According to Chitale, Hero MotoCorp plans to double production capacity for certain scooter models as part of its expansion strategy.

The company has also committed an additional investment of more than Rs 700 crore for the development of a global parts centre in southern India. The facility is expected to strengthen supply chain efficiency and support the company’s domestic as well as international operations.

Hero MotoCorp has been focusing on expanding its presence in the scooter segment amid rising competition and growing consumer demand in the urban mobility market.

The investment plan reflects the company’s broader strategy to enhance manufacturing capabilities, improve operational efficiency, and support future growth in both traditional and emerging mobility segments.

Industry observers note that the Indian two-wheeler sector continues to see increasing demand for scooters, particularly in urban markets, due to convenience, fuel efficiency, and changing mobility preferences.

The planned capacity expansion is also expected to support Hero MotoCorp’s efforts to strengthen its market leadership and improve responsiveness to rising demand across multiple product categories.