Amid rising demand for electric two-wheelers in the country, Hero MotoCorp on Friday said it plans to raise its electric vehicle production capacity to around 45,000 units per month by the end of the current financial year (FY27), tripling from 15,000 units capacity it had in FY26.
The company’s production capacity has already reached nearly 30,000 units in the first week of August.
“As we stand today in the first week of August, it has already increased to close to 30,000 per month, and you should see us go to close to 45,000 per month before the end of this financial year,” Hero MotoCorp CEO Harshavardhan Chitale told investors on Friday. “So, as we had committed, we are tripling our EV capacity in this financial year.”
The capacity expansion is being driven by robust retail demand, with the company saying its dealerships are carrying virtually no excess inventory and that production is being retailed almost immediately.
“We have pretty much nil channel inventory. You know, it’s 2-3 days, depending on the region. So whatever we are supplying and shipping is actually retailed immediately,” Harsh Vardhan said, adding that the company expects the additional capacity to be absorbed quickly.
Hero MotoCorp reported a 151% year-on-year increase in EV volumes in the June quarter, while revenue from its electric vehicle business stood at around Rs 660 crore. The company expects EVs to contribute a larger share of revenue as production capacity increases and the product portfolio expands.
Expanding Portfolio
Hero MotoCorp has also expanded its Vida electric scooter portfolio during the first quarter. It launched the Vida VX2 Plus 4.4 kWh variant with an IDC-certified range of 187 km and later introduced the VX2 Go 3.1 kWh variant aimed at customers with convenient home and office charging access. Management said both variants are expected to contribute significantly to volumes as they gain traction.
Meanwhile, the company is also preparing to expand its electric motorcycle portfolio. Harsh Vardhan said Hero would have a range of motorcycles into the market before the proposed Delhi EV policy comes into effect.
Hero MotoCorp’s Emerging Mobility Business Unit Chief Business Officer, Kausalya Nandakumar, said motorcycles based on the UBEX platform and the company’s collaboration with Zero Motorcycles are planned for launch next year.
Double-Digit Industry Growth Outlook
Hero MotoCorp also raised its outlook for the domestic two-wheeler industry, saying it now expects the market to grow at close to double digits in FY27, supported by sustained demand across both internal combustion engine and electric vehicles.
“The second half does have a base effect because of a big jump that happened in sales in H2 last year post-GST. Hence, from a base perspective, the year-on-year growth will be lower, but given the current momentum, we still expect positive growth in H2, and our plans right now are for the full year to approach double-digit industry growth,” Chitale said.
