BackHero eyes expansion of manufacturing units in Mexico, Argentina, Brazil
Hero MotoCorp's first global manufacturing facility at Villa Rica in Colombia, entailing a project investment of $70 million, became operational this week
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Villa Rica: As part of its global expansion drive, two-wheeler major Hero MotoCorp Ltd plans to set up manufacturing facilities in Mexico, Argentina and Brazil and expects to utilise the new Colombian plant as a hub to export to nearby countries.
“Going forward in terms of manufacturing facility, we are looking at some other countries in the region like Mexico, Argentina and Brazil," Hero MotoCorp’s Chairman, Managing Director and CEO Pawan Munjal told PTI.
Hero MotoCorp’s first global manufacturing facility at Villa Rica in Colombia, entailing a project investment of $70 million, became operational this week. With the commencement of operations at Colombia plant, the New Delhi-headquartered Hero MotoCorp has become the first Indian two-wheeler manufacturer to set-up a manufacturing unit in Latin America.
When asked about other geographic locations that Hero was looking at for investment purposes, especially in the US and Europe, Munjal said, “Right now there are no manufacturing plans there, but we could look at Africa as a region where Nigeria is one possibility." Nigeria is the largest two-wheeler market in Africa.
On products that the company would make at the Colombian facility, he 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)..." The company has set a target of selling 1.2 million two-wheelers in global markets by the year 2020.
To meet this target, Hero is aiming to be present in 50 countries by that time. When asked whether there could be any impact of bankruptcy of Eric Buell Racing (EBR), Munjal said, “We are not changing our targets for 2020." He further said that the products Hero was developing together with EBR would now be completed by itself in India.
Hero MotoCorp sells its products in 24 countries including Sri Lanka, Nepal, Bangladesh, Egypt and Turkey, as also in Peru, Ecuador and Colombia in South America, among others. In partnership with its local distributors, HMCL has also established assembly units in Kenya, Tanzania and Uganda in East Africa.
With another overseas manufacturing plant coming up in Bangladesh, the company is fast building up a global manufacturing base to cater to growing demand for its products in the international markets. PTI
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