Hero MotoCorp to double production of scooters

The world's largest two-wheeler maker, Hero MotoCorp, primarily a bike manufacturer, is planning to double its production of scooters to grab a 25% share in the domestic market. The company, with an installed annual capacity of 6.4 million units across three plants, plans to ramp up the production of scooters to 6,00,000 units a year. The company currently produces scooters only at its Gurgaon plant.

Production will be stepped up from 8,000 units to 9,500 units at the Haridwar plant over the next six months, the company's CFO Ravi Sud said, and output will be raised at Gurgaon and Dharuhera manufacturing facilities as well. Sud said the company will enforce three shifts from next year to raise the annual output to 7 million units.

However, the company's fourth plant that was expected to come up by the end of this fiscal in south India is now likely to be commissioned only in the second half of the next fiscal. The company has outlined an initial investment of Rs 500 crore in the plant that is expected to add 1.5 million units to its annual capacity.

As much as 95% of the company's sales come from bikes, led by its Splendor and Passion brands. It sold 1.95 lakh units of its Pleasure model of scooters during the first six months of this fiscal.