Hero MotoCorp to invest ₹3,200 crore in Andhra Pradesh, doubles Tirupati capacity; sets up ₹750 crore global parts hub
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India's largest two-wheeler manufacturer Hero MotoCorp has unveiled a fresh investment roadmap of more than ₹3,200 crore in Andhra Pradesh over the next three to five years, reaffirming its long-term commitment to the state through a major manufacturing expansion, a new global parts centre and capacity enhancement at its Tirupati facility.
The company on Wednesday laid the foundation stone for its second Global Parts Centre (GPC 2.0) in Tirupati, which will be built with an investment of over ₹750 crore. The project forms part of the broader investment plan aimed at transforming Tirupati into a global manufacturing and electric mobility hub, while strengthening Hero MotoCorp's domestic and international supply chain network.
Tirupati to become manufacturing and EV hub
Hero MotoCorp Executive Chairman Pawan Munjal said the company had already invested around ₹1,600 crore in Andhra Pradesh, including commissioning its Tirupati manufacturing facility in 2018. Expansion plans, however, were delayed due to the Covid-19 pandemic.
The company is now reviving and significantly scaling up its investment programme.
"This will include the ₹750 crore that we are investing in setting up the GPC 2.0 and also increasing the annual production capacity of the Tirupati plant," Munjal said during a media interaction.
Currently, the Tirupati facility has an annual production capacity of around 0.6 million units. Hero MotoCorp plans to increase this to 1.2-1.5 million units, with the expansion expected to generate nearly 4,000 employment opportunities.
The Tirupati facility manufactures both internal combustion engine (ICE) two-wheelers and Hero MotoCorp's entire electric vehicle portfolio. According to the company, the investment will further strengthen Tirupati's position as one of India's key future mobility manufacturing hubs.
New parts centre to serve India and global markets
The upcoming Global Parts Centre will be Hero MotoCorp's second after its existing facility at Neemrana, Rajasthan. Scheduled to become operational in about two years, the new centre will support domestic spare parts distribution while exporting completely knocked down (CKD) kits and components to the company's overseas markets.
Munjal said the decision to establish another parts hub was driven by Hero MotoCorp's expanding vehicle parc.
"Considering the total number of vehicles that we have sold over the years, the requirement of parts only goes up with the age of the vehicle," he said, adding that the Tirupati facility would cater to both domestic and international spare parts operations.
The executive chairman said Tirupati was the natural choice given Hero MotoCorp's existing manufacturing presence and the availability of land for future expansion.
Accessories business gets a strategic push
The new logistics hub is also expected to play a pivotal role in expanding Hero MotoCorp's accessories and merchandise business, an area the company is increasingly focusing on through its partnership with Harley-Davidson.
Munjal said Hero MotoCorp has been drawing lessons from the American motorcycle maker, where accessories and merchandise contribute nearly 30% of revenue.
"Our accessories and merchandising business is currently very small, but we have decided to focus and grow this business. From where we are today, it will be manifold," he said, adding that the new parts centre would significantly improve the company's ability to serve this segment.
Andhra Pradesh policy support drives fresh investment
Explaining the renewed investment commitment, Munjal credited the Andhra Pradesh government's investor-friendly policies.
"The policies that the current state government under Chief Minister Chandrababu Naidu has put out for the economy and various industries are very conducive to more and more investment, very business friendly, which obviously brings us back into Andhra Pradesh for more investments," he said.
Chief Minister N. Chandrababu Naidu described Hero MotoCorp's decision as a strong endorsement of Andhra Pradesh's industrial ecosystem, saying the investment would strengthen Rayalaseema's industrial base, generate employment and further establish Tirupati as a leading manufacturing, mobility and logistics hub.
Alongside the investment announcement, Hero MotoCorp also partnered with the Andhra Pradesh government to launch the Dr. Brijmohan Lall Munjal Heroes of Tomorrow Scholarship, a merit-based initiative that will provide full tuition support to engineering students at state IIITs. The company also announced the deployment of VIDA electric scooters and specialised road safety training for women police personnel in Tirupati as part of its community development initiatives.