Hero MotoCorp Expansion Plan, to Start Production in Mexico, Argentina and Brazil
Modified On Dec 22, 2015 12:00 AM By Garvit Narang
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After splitting with Erik Buell Racing (EBR), who handled Hero MotoCorp’s production in the US, the company has now started its first manufacturing unit in Colombia this week. Hero MotoCorp has become the first Indian two-wheeler company to set up a manufacturing plant in Latin America. They are also planning to set up manufacturing facilities in other countries like Mexico, Argentina and Brazil as part of their global expansion strategy.
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When asked about their global expansion plan, Pawan Munjal, Chairman, Managing Director and CEO, Hero MotoCorp, said, "Going forward in terms of manufacturing facility, we are looking at some other countries in the region like Mexico, Argentina and Brazil." For other options in US and Europe, he said, "Right now there are no manufacturing plans there, but we could look at Africa as a region where Nigeria is one possibility.", as Nigeria is the largest two-wheeler market of Africa. On the products they will manufacture in the Colombian plant, Munjal said, "It is starting with our entry-level product to the current biggest engine that we produce -- the Karizma. So it's a range from entry to top-end." When asked about the impact of EBR’s bankruptcy on the company, he said, "We are not changing our targets for 2020.", he added that the products Hero was developing together with EBR would now be completed by itself in India.
Also Read: Hero MotoCorp starts 1st Manufacturing Plant in Colombia
Hero MotoCorp is selling its two-wheelers in twenty-four countries including Sri Lanka, Nepal, Bangladesh, Egypt, Turkey, Peru, Ecuador and now Colombia and has their assembly units in Tanzania, Kenya and Uganda. A new manufacturing plant is also planned to be set up in Bangladesh, keeping in mind the internationally increasing demand of its products. The company is targeting to sell 1.2 million units globally by 2020.
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