Two-wheeler market leader Hero MotoCorp has earmarked ₹1,500 crore capex for FY27 to double its scooter production capacity, according to its CEO Harshavardhan Chitale.

The company has also committed over ₹700 crore of investment in building a global parts centre in South of India, he told analysts.

"We are investing in capacity expansion, and we have committed over ₹1,500 crore of capex in FY27. And this capex is going to expand our capacity in scooters, where for some of our models that are doing very well, we are doubling our capacity," Chitale said.

With the company doing "60,000-odd scooter volume run rate" monthly at present, when asked if doubling it could mean closer to 1 lakh, he said,"That's our ambition." Elaborating on the scooter capacity expansion, Chitale said in the ICE (internal combustion engine) scooters, Hero MotoCorp has increased 'Destini' model capacity by 50 per cent already.

"We are in the process of doubling our Xoom capacity," he added.

On EV, he said,"We are close to completing an expansion, which will effectively get us 50 per cent more capacity than the last quarter and then additional few quarters down the road, we are in process of further doubling capacity." The company has gone from 15,000 units to 25,000 units and will further double that capacity before the end of this year, he added.

On new investment in the parts centre, Chitale said,"We are also making significant investment in building up a second parts center, which is going to help in further expansion of our parts and accessories business. We have committed over ₹700 crore of investment in building out a global parts center in South of India." On the impact of the West Asia war on demand, Chitale said in April and the first week of May demand momentum continued and there was no softening of demand.

Before the war broke out the two-wheeler industry was expecting high single-digit volume growth in FY27 but with the situation ever evolving it needs to be monitored how it impacts demand because of the uncertainty that it creates, he added.

Published on May 17, 2026