Hero MotoCorp, India's leading two-wheeler manufacturer, has announced a capital expenditure of ₹1,500 crore (approximately $180 million USD) for FY27 aimed at doubling its scooter production capacity. The company also plans to invest over ₹700 crore (around $84 million USD) in a new global parts center in southern India.

• 01Hero MotoCorp aims to increase its scooter production from a current monthly run rate of approximately 60,000 units to an ambitious target of 100,000 units.
• 02The company has already increased the production capacity of its 'Destini' model by 50% and is in the process of doubling the capacity for its 'Xoom' model.
• 03Hero MotoCorp's electric vehicle (EV) capacity has expanded from 15,000 units to 25,000 units, with plans to double this capacity again by the end of the year.
• 04The investment in the new global parts center in southern India is expected to enhance the company's parts and accessories business significantly.
• 05Despite concerns over the impact of the ongoing West Asia war on demand, the company reported stable demand momentum in early May 2023.

The expansion in production capacity is expected to meet increasing demand for scooters, potentially leading to job creation and enhanced availability of two-wheelers in the market.