New Delhi: Two-wheeler major Hero MotoCorp has more than doubled its capex for the current fiscal to Rs 1,500 crore, mainly to upgrade its portfolio to conform to BS-VI emission norms and for its upcoming plant in Andhra Pradesh, a senior company official said Monday.
The capital would also be utilised for the development of new products.
"We have earmarked a capex of Rs 1,500 crore this fiscal. It will be utilised for Andhra plant, BS-VI upgradation and usual things like new product development," Hero MotoCorp CFO Niranjan Gupta told reporters here.
The country's largest two-wheeler maker had earmarked Rs 700 capex in 2018-19.
The company, which is trying consolidate its position in the premium segment, Monday launched two new scooters to cater to both, domestic as well as international markets.
It introduced Maestro Edge 125 with fuel injection technology priced at Rs 62,700. The company claimed it is India's first scooter with fuel injection technology.
The variants of Maestro Edge 125 with non-fuel injection technology are tagged at Rs 58,500 and Rs 60,000 (ex-showroom Delhi).
Hero MotoCorp also introduced 110 cc Pleasure+ priced at Rs 47,300.
Gupta said the company's share in the scooter segment remained 'under indexed' and there was enormous opportunity for growth.
"Premium segment (125 cc) in scooters is growing and we are also bringing in new products. It will also have a positive impact on our entry level scooters, which continue to bring in maximum customers," Gupta said.
When asked about the outlook in the current fiscal, Gupta said: "We expect second half of the fiscal to be better with expectations of a good monsoon and easing of liquidity in the market."
He said the inventory levels at the company's dealerships remained at 45-50 days and it has also eased credit days for dealers depending upon their category.
Commenting on the new launches, Hero MotoCorp Head of Sales, Aftersales, and Parts Sanjay Bhan said that the company has already made a strong and successful foray in the 125 cc scooter segment with the launch of Destini 125 recently.
"Together with Maestro Edge 125 and Pleasure 110, we are confident that our portfolio will appeal to a varied customer set and subsequently, contribute towards growing our presence in the scooter segment," he noted.
The launch of new scooters comes closely after the introduction of all-new X range of motorcycles -- XPulse 200, XPulse 200T and Xtreme 200S.