India's biggest two wheeler manufacturer, Hero MotoCorp Ltd, have big plans to invest INR 2,200 crore to set up a new manufacturing facility in south India.
Hero MotoCorp has already signed a preliminary agreement with the government of Andhra Pradesh to set up the new plant. This new facility will spread across 600 acres and will have a capacity to manufacture about 1.8 million vehicles per year according to sources.
The two wheeler maker, who already has three manufacturing plants as well as one under construction, did not comment about the new plant coming up.
Hero MotoCorp also have plans to set up a manufacturing plant in Gujarat, where the construction is expected to begin soon.
This new facility in Andhra will be Hero MotoCorp's sixth manufacturing facility in India and will aid the company to increase its annual production capacity to about 12 million vehicles per year.
The Andhra Pradesh Cabinet reportedly discussed the incentives being offered to Hero MotoCorp on Monday. The information was not shared by Public Relations Minister Palle Raghunath Reddy. He stated that Chief Minister Naidu himself will announce the details in this regard.