Hero MotoCorp FY27 capex: ₹1,500 cr to double scooters

What Hero MotoCorp announced

Hero MotoCorp, India’s largest two-wheeler maker, has outlined a capacity-focused investment plan for FY27. CEO Harshavardhan Chitale told analysts the company has earmarked over ₹1,500 crore of capital expenditure in FY27. The key objective is to expand scooter manufacturing capacity, especially for models where demand has picked up. Alongside scooters, the company is also scaling electric vehicle manufacturing under its Vida brand through phased capacity expansion. Separately, Hero MotoCorp has committed over ₹700 crore to build a global parts centre in South India to support parts and accessories growth.

₹1,500 crore FY27 capex: where the money goes

Chitale said the FY27 capex is aimed at capacity expansion, with scooters a central focus. He indicated that for some scooter models “doing very well,” the plan is to double capacity. In addition to scooters, the company has also spoken about expanding EV manufacturing operations. The stated plans also include supporting areas tied to execution, such as broader business strengthening efforts discussed on the analyst call. The announcement places manufacturing readiness at the core of the company’s FY27 operating priorities.

Scooter volumes: 60,000 units a month now, 1 lakh the ambition

Hero MotoCorp’s current scooter run rate is “60,000-odd” units per month, as shared by the CEO. When asked whether doubling capacity could take monthly scooters closer to 1 lakh units, Chitale responded that reaching around 1 lakh is the company’s ambition. The comment highlights how the company is linking capex decisions to current run rates and the practical ceiling imposed by existing capacity. It also signals a sharper push in scooters, a segment where Hero MotoCorp has been working to strengthen its portfolio.

ICE scooter capacity moves: Destini and Xoom

On internal combustion engine (ICE) scooters, the company has already executed capacity actions on specific models. Chitale said Hero MotoCorp has increased capacity for the Destini scooter by 50% already. He also said the company is in the process of doubling capacity for the Xoom scooter. These measures indicate that the scooter expansion is not only a broad target but is being implemented model-by-model, based on what management described as strong performance in select products.

EV manufacturing ramp under Vida: step-up and doubling plan

Hero MotoCorp’s EV capacity expansion is being done in phases, according to Chitale. He said the company is close to completing an expansion that will take EV capacity to 50% more than the last quarter. Beyond that, over the next few quarters, the company is in the process of further doubling capacity. He also shared the company has already moved from 15,000 units to 25,000 units (capacity) and plans to further double that capacity before the end of this year. The statement frames EV capacity as a rolling expansion programme rather than a one-time jump.

₹700 crore global parts centre planned in South India

In addition to manufacturing capacity, Hero MotoCorp is investing in its parts and accessories infrastructure. Chitale said the company is building a second parts centre that will help expand parts and accessories business. He added that the company has committed over ₹700 crore to build a global parts centre in South India. While the company did not provide a commissioning timeline in the shared remarks, the investment size and “global” positioning suggest a sizeable distribution and supply chain project.

Demand watch: what management said on West Asia conflict

Chitale addressed the potential demand impact from the West Asia war. He said demand momentum continued in April and the first week of May, and there was no softening of demand during that period. However, he added that before the war broke out, the two-wheeler industry was expecting high single-digit volume growth in FY27. With the situation “ever evolving,” he said it needs monitoring because of the uncertainty it creates. The comments indicate management is tracking macro risks while stating near-term demand held up.

Key numbers and capacity targets

Why the announcement matters for investors

The plan provides clearer visibility on where Hero MotoCorp wants incremental growth to come from: scooters and EVs, backed by manufacturing capacity. Doubling scooter capacity for strong-performing models can reduce supply constraints if retail demand remains steady. On EVs, moving capacity from 15,000 to 25,000 units and planning another doubling by year-end signals intent to support higher volumes without depending on short-term capacity fixes. The parts centre investment is also relevant because parts and accessories can be an operational lever, improving service readiness and supporting the installed base.

Conclusion

Hero MotoCorp’s FY27 plan centres on a manufacturing-led push, with over ₹1,500 crore of capex earmarked to double scooter capacity and scale Vida EV output in phases. The company is also committing over ₹700 crore to build a global parts centre in South India. Management said demand momentum stayed firm through April and early May, while noting that FY27 industry growth expectations need monitoring amid geopolitical uncertainty. The next updates investors will watch are execution milestones on scooter lines, EV capacity step-ups, and progress on the new parts centre project.