Hero MotoCorp, one of India’s leading two-wheeler manufacturer and third largest producer of two-wheeler automobiles in the world, is all set to increase their production capacity. Hero MotoCorp is planning to set up a new manufacturing unit in Gujarat at a cost of Rs. 1200 crores. As part of increasing their annual production, Hero MotoCorp wants to establish this new facility in Gujarat. By establishing the new unit, Hero MotoCorp will be able to solve their logistic issues which they are facing, when transporting vehicles to western part of India from their manufacturing units which are located in the northern part of India. Hero MotoCorp will have ease of access to export their products to different countries as Gujarat state has a well-maintained modern port infrastructure. By establishing facility center in Gujarat Hero MotoCorp can reap benefits by increasing production for domestic sales and also concentrate on international exports through Gujarat port.
Hero MotoCorp will be setting up their facility plant on 300 acres area. The new plant will have the capacity of producing 2 million vehicles annually. Hero MotoCorp is planning to start its operations at this plant by 2014. Hero MotoCorp is also planning to set another facility center in South India region. They are planning to set up a new facility center in Dharwad, Karnataka. Hero MotoCorp has planned to open their facility center in 500 acres area, which is very closely located near Tata Motors truck manufacturing unit. Hero MotoCorp is planning to increase its production capacity in other three facility centers located in Gurgaon, Haridwar, and Dharuhera.
Hero MotoCorp has recently partnered with Erik Buell Racing, which is an American bike manufacturing company. Erik Buell Racing, will provides its technical support to Hero MotoCorp for building and designing their future bike models. The deal came in existence after Hero MotoCorp dissolved its partnership with Honda. Honda is also developed new bike Honda Dream Yuga 110 cc commuter motorcycle which will be competing with Hero MotoCorp Passion XPro which is also 110 cc powered motorcycle.