Hero MotoCorp to increase EV capacity to 80,000 units per month by Q2 FY28

Hero MotoCorp plans to more than double the monthly production capacity of its Vida electric two-wheelers to over 80,000 units by the second quarter of FY28, as strong demand outpaces the company’s ability to supply vehicles.

The country’s largest two-wheeler maker aims to raise capacity to 45,000 units a month by the end of March, before expanding it further in the following financial year, CEO Harshavardhan Chitale said. The company currently has the capacity to produce 30,000 electric two-wheelers a month, up from 15,000 units at the end of FY26.

"We have already doubled the capacity. We are well on our way to take it to 45,000 units a month in the fourth quarter. Looking at the demand, we are expanding further, which will take our capacity to over 80,000 units a month by the second quarter of FY28," he said.


Demand has been strong enough to leave Hero MotoCorp with dealer inventory of only about a day, indicating that production has yet to catch up with sales requirements.

"Our dealer inventory continues to be low. We are working with a dealer stock of just about one day, which shows that we are still capacity constrained and there is a strong demand for our product," Chitale said.

Hero MotoCorp’s expansion comes as electric scooters gain ground in India’s two-wheeler market. Electric vehicles account for more than 20% of the scooter segment, while registrations of electric two-wheelers rose 33% during the Navratri period to 75,758 units, according to data from the Federation of Automobile Dealers Associations (FADA). Total two-wheeler registrations, by contrast, declined nearly 3% to 8.34 lakh units during the period.

Manufacturers across the electric two-wheeler industry are expanding production to capture the growing demand. TVS Motor leads the market, followed by Bajaj Auto, Ather Energy and Hero MotoCorp, with all four companies working to increase capacity.

TVS Motor and Bajaj Auto are targeting monthly capacity of 80,000 units by March, while Ather plans to reach around 95,000 units by July-September with its new facility.

"Right now the industry as a whole is definitely capacity constrained. There is far more demand. As and when anyone brings on capacity online and if the product is good, there is an immediate bump up in share," Chitale said.

Alongside manufacturing expansion, Hero MotoCorp is looking to widen the retail reach of its Vida electric two-wheelers. The vehicles are currently sold through around 700 retail outlets, a small share of the company’s broader distribution network.

"When we put it in the context that we have close to 8,500 points of sale, there is a lot more retail expansion that is going to come to further drive the growth," he added.