Hero MotoCorp aims to raise its electric vehicle production capacity to 45,000 units per month by the end of the current financial year, tripling capacity from the level at the close of the previous financial year, senior company officials said on Friday.
The company ended the last financial year with a monthly EV production capacity of 15,000 units. That has now increased to nearly 30,000 units and is expected to reach about 45,000 units before the end of financial year 2027, according to the management.
Nil Dealer Inventory Driving Faster EV Rollout
"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 said. "So, as we had committed, we are tripling our EV capacity in this financial year."
The company said the capacity addition is backed by robust retail demand, with very little inventory at dealerships. "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.
Vida VX2 Plus and VX2 Go Boost Q1 EV Volumes
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.
Hero MotoCorp reported a 151% year-on-year increase in EV volumes in the June quarter and said EV revenue stood at around Rs 660 crore. The company expects electric vehicles to contribute a larger share of its revenue as production capacity increases and the product portfolio expands.
Meanwhile, the company said it 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 Electric Motorcycle Plans: UBEX, Zero Motorcycles Tie-Up
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.