Hero MotoCorp to invest Rs 3,200 crore in Andhra Pradesh, adding EV capacity and 4,000 jobs

Hero MotoCorp commits Rs 3,200 crore to expand in Andhra Pradesh, including a Rs 750 crore second Global Parts Centre in Tirupati and scaling EV manufacturing capacity to 1.2-1.5 million units. The move follows 185% YoY EV sales growth, with 21,812 units in June.

— Source publishedWed, 1 Jul, 2026, 22:41 IST·First seen Wed, 1 Jul, 2026, 23:24 IST·Source Financial Express · BrandWagon

What happened

Hero MotoCorp commits Rs 3,200 crore to expand in Andhra Pradesh, building a second Global Parts Centre in Tirupati and scaling EV manufacturing capacity to

Key facts

  • Rs 3,200 crore total investment
  • Rs 750 crore Global Parts Centre
  • 185% YoY EV sales growth
  • 21,812 units June
  • 1.2-1.5 million units capacity
  • 4,000 jobs
  • share up 1% at Rs 4,828

Why this matters

The aggressive EV capacity build to 1.2-1.5M units positions Hero to consolidate two-wheeler EV share, opening opportunities for battery, component, and charging partnerships or acquisitions in the region.

What to watch

  • Monthly EV unit sales trend vs the 21,812 June baseline
  • FAME/subsidy policy changes at central and state level
  • Capacity utilization disclosures in quarterly earnings
  • Vida market-share movement vs Ola/TVS iQube/Bajaj Chetak
  • Groundbreaking and hiring milestones at the Tirupati site
  • Competitors (TVS, Bajaj, Ola) accelerate their own EV capacity or price cuts to defend share
  • Component and battery-cell suppliers negotiate co-location deals near Tirupati
  • Hero pushes Vida dealer network expansion and financing tie-ups to fill new capacity
  • AP government fast-tracks incentives and land to lock in the multiplier employment