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

Hero MotoCorp, India's largest two-wheeler manufacturer, is set to significantly increase its production capacity of electric two-wheelers. By March-end, the company plans to raise its Vida electric two-wheeler output to 45,000 units per month, and by the second quarter of FY28, it aims to boost this to 80,000 units monthly, according to a senior executive.

The bottleneck, according to Harshavardhan Chitale, Hero MotoCorp's CEO, is supply, with dealer inventories for the Vida electric two-wheeler sitting at around one day. Chitale highlighted that the current dealer stock is insufficient, indicating that the company remains capacity constrained.

Earlier, the automaker's electric two-wheeler capacity was limited to 15,000 units per month at the end of the financial year 2026, but this has since doubled to 30,000 units. The company is now well on track to reach 45,000 units per month by the end of Q4. Chitale further revealed that the expansion plans aim to take the capacity beyond 80,000 units per month by the second quarter of FY28.

The electric two-wheeler market is experiencing robust demand, with penetration surpassing 20% in the scooter segment. This surge in demand is reflected in the data from the Federation of Automobile Dealers Associations (FADA), which noted a 33% jump in electric two-wheeler registrations during the Navratri period, reaching 75,758 units. However, total two-wheeler registrations saw a slight decline of almost 3%, dropping to 8.34 lakh units.

Key players in the market include TVS Motor, Bajaj Auto, Ather Energy, and Hero MotoCorp. All the top four OEMs are scaling up their capacity to keep pace with the escalating demand. TVS and Bajaj have set their sights on achieving 80,000 units per month by March, while Ather is targeting around 95,000 units capacity by July-September, following the commissioning of its new facility.

The industry, as a whole, is currently facing capacity constraints. Despite this, any new capacity additions with a good product quality have been rapidly recognized and welcomed, as per Chitale. The expansion of Hero MotoCorp's Vida distribution comes as the company looks to further capitalize on its substantial dealer network, currently consisting of approximately 8,500 retail outlets. With this expansion, the company aims to drive growth and meet the growing demand for its electric two-wheelers.