Hero MotoCorp cuts capital expenditure for FY21 by 40% to conserve cash

Firm says retail uptick has been very encouraging; Hero hopes to clock 80% volume of what it was doing before the pandemic struck, in June

Hero MotoCorp has pared its capital expenditure for the current fiscal to Rs 600 crore as the market leader seeks to cut costs and conserve cash amid the pandemic, company’s management said in an investor call on Wednesday. The capex reduction will be applicable in all areas including capacity expansion and renovation, except research and development, the company said.

“Earlier our projected capex for the current year was Rs 1,000 crore. We have rationalised it to Rs 600 crore for the current year,” said Niranjan Gupta, chief financial officer at Hero MotoCorp.

Touching upon the demand scenario after easing of