Now Hero MotoCorp Goes International

Indian automotive industry is witnessing a tough time these days but the two-wheeler industry is getting stronger day by day. The domestic market is showing a slow and steady growth, but it is the export market, which is getting the momentum. Recently, Rajiv Bajaj, MD Bajaj Auto announced the company's plans to capture bigger share globally and now Hero MotoCorp is looking forward to its ambitious plan to garner 10 per cent of its total volumes from international business in five years. Hero MotoCorp, the world's largest two-wheeler manufacturer ( by volume), has commenced its operations in three Latin American countries — El Salvador, Honduras and Guatemala. And they are hoping to reach as many as 30 countries spread across the globe.

There are reports that Hero MotoCorp has already dispatched the first consignment of two-wheelers to these three countries recently. Technically it's the beginning of Hero's ambitious global foray, which they were planning since separation from erstwhile partner Honda. The Indian major is planning to expand its international business to 30 countries spanning across Africa, Latin America, Central America and South-East Asia over the next few years. It is the similar strategy that they unveiled at Hero's global brand launch event in London in August 2011.

Some news agencies reportedly said that the company has already started dispatching its two-wheelers to some new international markets from January. For this they have finalised the distributors and channel partners in Latin America and Africa, where they are looking for potential markets. However, Hero hasn't stated anything on its African operations, but they can start the operations any time soon. If we believe the words on the street, the company will launch the brand Hero in these countries in upcoming months and they are planning to establish an assembly unit later.

Hero MotoCorp also agreed that local distributors in these markets have already been identified, but declined to divulge any further details, saying : "Yes, we have identified distributors for these markets, and we will make an announcement with all relevant details of our new international markets very soon, but closer to the time. It is not appropriate, therefore, at this stage to name our distributors and channel partners in these new international markets."

Hero is selling bikes in Columbia at the moment and their presence in these markets is minimal at the moment. The market is currently dominated by the Japanese — Honda, Yamaha, Suzuki and Kawasaki, which today hold about 40 per cent of the entire Latin American market, while some Chinese players are also active in the entry level space. So, it is the start of Indian brands' global foray and we are hoping the best for both Bajaj and Hero.

Source: ET