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Hero MotoCorp to up capacity by around 7m in 2012

20 Oct 2011 Evaluate

In order to cater to the growing demand for fuel-efficient two wheelers in a tough economic climate, market leader Hero MotoCorp is increasing output of its three plants in North India to around 7 million units by March, 2012. A new fourth plant, previously expected to come up in the later part of this fiscal in South India, is now likely be commissioned by the second half of 2012-13. Around Rs 500 crore is expected to be invested in this new plant with a 1.5 million annual capacity over a phased manner. With the new plant plans pushed back, the capital expenditure target for 2011-12 has been reduced to Rs 600 crore from Rs 900 crore.

At present, Hero MotoCorp has an installed annual production capacity of 6.1 million units across its three plants in Gurgaon, Dharuhera and Haridwar. Though last year it produced 5.4 million units, this year production has already being taken up to 6.4 million units a year.Hero MotoCorp, 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 will enforce three shifts from next year to raise the annual output to seven 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

Hero MotoCorp Share Price

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