Hero to export two wheelers to 20 new markets by March end
To cater Latin American market, company is preparing to set up a manufacturing unit in Colombia, within first three months of year joint venture agreement will be done.
Hero MotoCorp the India’s largest two Wheeler Company is revving up expansion and plans to create their presence in 20 new markets by March 2014 with the four assembly operations globally. To cater Latin American market, company is preparing to set up a manufacturing unit in Colombia, within first three months of year joint venture agreement will be done.
Hero MotoCorp Managing Director and CEO Pawan Munjal said "We have been intensifying our global market expansion. In the first quarter of 2014, we will enter Ethiopia, Turkey and Nicaragua in Central America. The short term goal is to enter 20 new markets by March-end,"
Company has already started dispatching their vehicles to other new markets like Tanzania, Uganda, Burundi, Egypt, Ecuador and Bangladesh. "In Tanzania and Uganda, we will have local assemblies just as we have in Kenya. Similarly, in Bangladesh also we will have local assembly operations," Munjal said.
The assembly operations in Tanzania and Uganda are being set up, while the one in Bangladesh is getting ready to become operational later this year. In Kenya, last year Assembly operations had been already started by Hero Motocorp.
For Colombia’s unit, Munjal said: "There is a requirement for us to do manufacturing to certain extent under the local regulations. We are in the process of finalising an agreement for a joint venture, which should happen in the first quarter of 2014." While he did not disclose the details of the proposed JV, Munjal said the manufacturing plant in Colombia would be used to cater to other Latin American markets.
Company has planned to enter in 50 new markets by 2020 with target of 20 manufacturing facilities across the globe with the annual turnover of Rs 60, 000 crore. In the last fiscal company’s turnover was around Rs 24,000 crore. Targeting to earn 10 per cent of its annual sales from export market with one million units by 2017.
As company have crossed the 50 million milestones last year. Hero MotoCorp has set a cumulative sales target of 100 million units by 2020. So far this fiscal April-December period - its sales stood at 46,56,433 units whereas 45,48,232 units were sold in corresponding period last fiscal, sales up by 2.37 per cent.