Two-wheeler makers plan to resume capital expenditure plans in FY22

Two-wheeler makers are planning to resume their capital expenditure plans in FY22 as they see signs of recovery in demand after an almost year-long slump. 

This will come as a boost for the government, seeking private sector capex. With the automobile sector accounting for over 7.1 per cent of the country’s gross domestic product, there’s a lot riding on this industry, analysts believe.

“We plan to revive our capex cycle from FY22 and we estimate it to be in the range of up to Rs 1,000 crore,” Niranjan Gupta, Chief Financial Officer at Hero MotoCorp, the largest two-wheeler seller, said.

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