Hero MotoCorp has announced a ₹3,200 crore investment over the next three to five years in Andhra Pradesh, significantly expanding its operations in the state. According to Executive Chairman Pawan Munjal, this investment includes setting up a ₹750 crore Global Parts Centre (GPC 2.0) at Tirupati and substantial increases in production capacity at the existing facility. The company had previously invested around ₹1,600 crore in Andhra Pradesh, including a manufacturing unit in Tirupati in 2018, but further plans were delayed due to the COVID-19 pandemic. The foundation stone for the new GPC was laid on Wednesday, marking a significant milestone in the company's expansion strategy.
The GPC 2.0 at Tirupati will be the company's second global parts centre after the first GPC at Neemrana in Rajasthan. Munjal explained that the current Tirupati factory produces 0.6 million units and will be expanded to 1.2-1.5 million units capacity. The new GPC will serve both domestic and international spare parts operations, with completely knocked down (CKD) parts to be exported to Hero MotoCorp's other global markets. The expansion is expected to generate around 4,000 employment opportunities and aims to transform Tirupati into a world-class manufacturing and electric mobility hub, while strengthening the company's global supply chain and reinforcing India's position in the automotive and EV ecosystem.
A key aspect of the GPC 2.0 will be to cater to Hero MotoCorp's growing ambition for increasing accessories and merchandising business, inspired by its partner Harley Davidson. As reported by The Economic Times, Munjal noted that Harley Davidson is very big on accessories and merchandising, with almost 30% of their revenue coming from parts, accessories, and merchandising. "We are learning more and more about accessories and merchandising from our current engagement partnership with Harley Davidson," Munjal said, adding that the company plans to "up its ante on accessories and merchandising." Currently, Hero MotoCorp's accessories and merchandising business is very small, but the company has decided to focus and grow this business "really big," with plans to make it manifold from where they are now.
Hero MotoCorp, the world's largest manufacturer of motorcycles and scooters, delivered exceptional Q1 FY27 performance with 16.8 lakh units dispatched, registering a robust 23% year-on-year growth. The company maintained healthy domestic retail momentum with VAHAN registrations of 15.3 lakh units and 9% growth over the same period last year. Monthly dispatches in June 2026 reached 541,159 units, with the scooter category emerging as a standout growth driver with 107.2% surge to 193,058 units compared to the previous year's first quarter. The momentum was driven by broad-based demand across core, premium and scooter segments including ICE and EVs.
The company has announced a partnership with the Andhra Pradesh government to launch a merit-based scholarship program supporting technical education. Munjal praised the state government's policies under Chief Minister Chandrababu Naidu, calling them "very conducive to more and more investment, very business friendly." He noted that these policies "obviously brings us back into Andhra Pradesh for more, more investments." The company's partnership with Harley Davidson continues to expand, with Munjal confirming that Harley is happy with what Hero MotoCorp is doing for them and they are only increasing the size of the business. The company has a number of products that will be launching soon, with a large number of variants and products in the pipeline for the mid to long-term.
