Hero MotoCorp to invest ₹1,500 crore in FY27 as EV arm Vida logs 190% growth, scooter capacity expansion accelerates

Hero MotoCorp Limited will invest over ₹1,500 crore in FY27 to expand manufacturing capacity, strengthen its scooter portfolio and accelerate electric vehicle (EV) growth under its Vida brand, as India’s largest two-wheeler maker deepens its push into high-demand segments after a record FY26 performance.

The company said the fresh capital expenditure will primarily be directed towards capacity expansion in scooters and EVs, along with product development, brand building and global business strengthening. The investment comes amid sustained demand momentum in entry-level motorcycles, scooters and early traction in premium and electric segments.

Vida EV momentum and scooter push drive capacity expansion strategy

Hero MotoCorp is aggressively scaling up its EV operations, with manufacturing capacity for Vida already ramped up to 25,000 units per month from 15,000 units earlier, and further expansion planned. The company also plans to double EV capacity in phases, reflecting strong demand traction.

“We are investing in capacity expansion, and we have committed over ₹1,500 crore of capex in FY27. This capex is going to expand our capacity in scooters where some of our models are doing very well,” Harshavaradhan Chitale, Chief Executive Officer, Hero MotoCorp, said during the Q4 FY26 post-earnings virtual call with the media.

He added, “In EVs, in a matter of a month, we will double the capacity from where we started last year, and further down the road there will be further doubling of capacity as we are seeing great momentum for our Vida brand.”

Vida recorded its highest-ever annual retail sales of 1.51 lakh units in FY26, marking nearly 190% growth over FY25, supported by expanding portfolio offerings including the VX2 series and new electric formats.

Record FY26 performance underpins aggressive investment cycle

Hero MotoCorp reported its strongest-ever financial performance in FY26, supported by higher volumes, improved mix and operating leverage. Consolidated revenue rose about 16% year-on-year to ₹47,411 crore, while net profit increased over 31% to ₹5,742 crore.

In Q4 FY26, revenue from operations stood at ₹12,978 crore, up 30.17% year-on-year, while net profit rose 26% to ₹1,460 crore. EBITDA grew 31% to ₹1,856 crore, reflecting margin expansion driven by scale and premiumisation.

The company sold 64.69 lakh units of motorcycles and scooters in FY26, registering 10% growth over the previous year, while Q4 volumes rose 24% year-on-year to 17.14 lakh units, aided by strong demand in the 100cc–125cc commuter segment and scooters.

Global expansion, premium motorcycles and parts business add growth levers

Beyond domestic volumes, Hero MotoCorp’s global business expanded to 52 countries, with international volumes rising 40% in FY26. Its Harley-Davidson 400cc–500cc range also posted 26% growth, supported by expanded retail reach.

The company is also strengthening its aftermarket ecosystem, committing over ₹700 crore to set up a second global parts, accessories and merchandising (PAM) centre in South India. Revenue from the parts and accessories business stood at ₹6,147 crore in FY26.

Chitale said the company continues to invest across multiple growth pillars including premium motorcycles, EVs, scooters and digital platforms, while also expanding into connected vehicles, GenAI-led customer interfaces and alternative fuel technologies such as flex-fuel systems.

Hero MotoCorp expects the two-wheeler industry to grow at moderate-to-high single digits in FY27, with scooters expected to outpace motorcycles, supported by urbanisation, e-commerce growth and improving EV penetration.