Hero MotoCorp, India’s largest two-wheeler manufacturer, has committed an investment of ₹3,200 crore in Andhra Pradesh, aimed at transforming Tirupati into a global manufacturing and electric mobility hub.
The announcement was made on Wednesday during the foundation stone-laying ceremony for its second Global Parts Centre (GPC) in Tirupati, being set up at an investment of ₹750 crore.
“This investment will enhance our global supply chain, support our expansion across markets, and reaffirm our commitment to ‘Made in India, for India and the World,” Pawan Munjal, Executive Chairman, Hero MotoCorp, said.
The upcoming Global Parts Centre will serve as the strategic hub for Hero MotoCorp’s domestic and international spare parts operations. The company also said, “100% of our electric vehicle portfolio is entirely designed, engineered and manufactured in the Tirupati plant.”
VIDA, Hero MotoCorp’s electric mobility business unit, delivered 185% year-on-year growth in electric two-wheeler sales to 21,812 units in June, as per VAHAN data.
“With this investment, the plant’s annual production capacity is expected to scale aggressively to 1.2–1.5 million units,” the company said. The expansion is expected to generate around 4,000 jobs.
Hero MotoCorp operates eight manufacturing facilities including six in India and one each in Colombia and Bangladesh. Hero MotoCorp’s investment comes just months after Eicher Motor – the maker of Royal Enfield brand of motorcycles – announced ₹2200 crore investment to set up a greenfield manufacturing plant in Tirupati district, Andhra Pradesh.
Andhra Pradesh Chief Minister N Chandrababu Naidu said Hero MotoCorp’s decision to establish the Global Parts Centre in Tirupati “is a strong endorsement of our state’s progressive policies, world-class infrastructure, investor-friendly ecosystem, and our commitment to the Speed of Doing Business.”
Shares of Hero MotoCorp closed 1% higher at ₹4,828 on the NSE.