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India’s largest two-wheeler manufacturer Hero MotoCorp has announced a capital expenditure plan of over ₹1,500 crore for FY27. The investment will be aimed at expanding production capacity in electric vehicles (EVs) and high-growth scooter segments, along with preparing for a pipeline of new product launches.
According to the company’s management, scooter production capacity is being doubled to meet strong demand. At the same time, the company is accelerating its EV strategy under the Vida brand, with plans to introduce multiple new electric two-wheelers. It is also preparing to double EV manufacturing capacity at its Sri City plant in Andhra Pradesh.
Following a strong financial performance in FY26, Hero MotoCorp is now focusing on high-growth segments, particularly EVs and ICE scooters. The company’s EV scooter volumes grew 2.5 times during FY26, albeit on a low base. It has already increased EV production capacity from 15,000 units per month to 25,000 units and is planning further expansion.
The company has also strengthened its scooter portfolio, increasing the capacity of its Destiny scooter by 50% and planning to double the production of its ICE scooter model, Zoom. Scooter volumes grew 48% year-on-year in FY26, reflecting robust demand in the segment.
Beyond capacity expansion, the ₹1,500 crore investment will also support new launches across EVs, premium motorcycles, and scooters, as well as investments in brand building and digital technologies. Hero MotoCorp is focusing on connected vehicle platforms, GenAI-driven customer interfaces, and low-emission powertrains, including flex-fuel options.
In addition, the company will invest over ₹700 crore to set up a second global PATH (Parts, Accessories, and Merchandising) centre in southern India to strengthen its aftermarket and accessories business.
Industry trends indicate that the two-wheeler market grew around 10% in FY26 to surpass 21 million units, while electric two-wheelers expanded by over 20% from a low base. EV penetration is expected to rise to 8–10% in FY27, positioning Hero MotoCorp to further strengthen its presence in both EV and scooter segments.
