Hero MotoCorp eyes international market

Around 20 % of the sales of Hero MotoCorp accounts to exports. The company is a major two wheeler manufacturer in India. However, it began exporting two years ago and is planning to prioritize Latin America, Africa and the Central American regions The Dollar Business Bureau

After splitting from Honda, Hero is planning to reach out to Latin America, Africa and Central America

Hero MotoCorp will start selling its two wheeler in Nigeria from March, said the Chairman and the Managing Director of the company, Pawan Munjal. He was presenting the company's Rs.850 crore coherent Research and Development facility at Kukas, located 25 kms from Jaipur. Around 20% of the sales of Hero MotoCorp accounts to exports. The company is a major two wheeler manufacturer in India. However, they began exporting two years ago and are planning to prioritize Latin America, Africa and Central America. After splitting from the Honda partnership of 26 years, Munjal decided to set his eyes towards the international markets that replicate India’s consumer behaviour. During the partnership days Honda had restricted the growth of Hero into the global market. The company has been receiving tough competition from Bajaj. Bajaj is a veteran in the international market and has been exporting since the late 1990's while Hero is two years old. The other scoring point that Bajaj has over Hero is its good lead over product development, while Hero still uses Honda’s technology. However keeping its fingers crossed, Hero is introducing its first indigenous motorcycle, the splendor iSmart, which could change the image of its bikes. iSmart is likely to be launched next month into the market though it was unveiled in the Auto Expo held in February. The largest selling two wheeler is also eyeing the Mexico market after Nigeria, as it foresees a 1-million-unit sale in 2017-18. In August 2013, Hero announced its plan to establish its brand in 50 markets by 2020, with a total of 20 manufacturing facilities and an annual turnover of Rs.60,000 crore. The company has set a progressive target of 100 million units by 2020, wherein they have already crossed the 50 million milestone. The company sold 6,631,826 units during the last fiscal and is also expecting a single digit growth during the current fiscal. Hero currently has four plants in India. Two in Gurgaon and Dharuhera (Haryana), one in Haridwar (Uttarakhand) and one in Neemrana (Rajasthan). The company has a total capacity to produce 81 lakh units per annum from its four production units.

March 11, 2016 | 03:00pm IST

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The Dollar Business Bureau - Mar 11, 2016 09:03 IST

Hero MotoCorp eyes international market

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