- Hero MotoCorp plans major EV and scooter production expansion before FY2027.
- The company is also building a new South India parts centre to support rising demand.
Hero MotoCorp has announced a capital expenditure commitment exceeding INR 15 billion for FY2027, focusing on expanding production capacity across its scooter, electric vehicle, and parts businesses. The investment plan reflects the company’s strategy to strengthen manufacturing readiness amid rising domestic demand for both internal combustion engine scooters and electric mobility products. The expansion initiatives will also support the company’s broader efforts to improve supply availability and operational efficiency across key product categories in India.
Within its ICE scooter portfolio, the company has already expanded production capacity for the Destini scooter by 50%. At the same time, Hero MotoCorp is progressing with plans to double manufacturing capacity for the Xoom scooter lineup. According to the company, the Xoom expansion project is expected to be completed during the first quarter of FY2027. These production enhancements are aimed at supporting increasing market demand while improving delivery timelines across dealership networks.
Hero MotoCorp is also significantly increasing its electric vehicle production capabilities through its VIDA brand operations. The company stated that monthly EV manufacturing capacity has already been raised from 15,000 units to 25,000 units. It now plans to further double capacity to nearly 50,000 units per month before the conclusion of FY2027. The move comes as the company continues to witness strong demand momentum in the electric scooter segment, particularly across urban mobility markets.
The company highlighted that dealer inventory levels for VIDA electric scooters currently remain in single-digit days across the country, indicating a strong demand-supply imbalance. The upcoming capacity additions are intended to reduce waiting periods and improve market availability. Hero MotoCorp believes that scaling production at a faster pace will help the company better address customer demand while strengthening its competitive position in the rapidly expanding EV scooter industry.
Hero MotoCorp FY2027 Expansion Overview
| Expansion Area | Current Status | FY2027 Target |
|---|---|---|
| Destini Scooter Capacity | Expanded by 50% | Operational Scaling |
| Xoom Scooter Capacity | Expansion Underway | Double Capacity by Q1 FY2027 |
| VIDA EV Capacity | 25,000 Units Per Month | 50,000 Units Per Month |
| Global Parts Centre | Planned in South India | Double Parts Handling Capacity |
Beyond vehicle production, Hero MotoCorp is investing more than INR 7 billion in establishing a new global parts centre in South India. The upcoming facility is expected to double the company’s existing parts handling capacity and improve supply chain responsiveness. The investment is intended to support the growing vehicle population and rising aftermarket requirements while ensuring smoother distribution of components and accessories across multiple regional markets.
Frequently Asked Questions
What is Hero MotoCorp investing in for FY2027?
Hero MotoCorp is investing more than INR 15 billion in expanding scooter, EV, and parts business operations before FY2027. The company is focusing on increasing production capacity for Destini, Xoom, and VIDA products while also establishing a new global parts centre in South India. These investments are aimed at improving manufacturing capability, addressing supply-demand gaps, and supporting future market growth across both conventional and electric mobility segments in India.
Why is Hero MotoCorp expanding VIDA EV production capacity?
Hero MotoCorp is expanding VIDA electric scooter production due to strong customer demand and low dealer inventory levels nationwide. The company stated that inventory remains at single-digit days, indicating supply shortages in several markets. To improve availability, the company plans to increase monthly EV production capacity to nearly 50,000 units before FY2027 ends. The expansion is also intended to strengthen Hero MotoCorp’s position in India’s rapidly growing electric two-wheeler market.
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