World’s largest two-wheeler manufacturer Hero MotoCorp is planning to set up manufacturing facilities in Brazil and Argentina, as a part of its expansion plans for South America. Mr Pawan Munjal, the head honcho of the Delhi-based manufacturer said that they are looking at setting up plants in Brazil and Argentina to help them avoid the complicated tax structure for imported motorcycles.
Hero MotoCorp recently marked its entry into the Colombian market with the launch of six motorcycles – Splendor iSmart, Eco Deluxe, Passion PRO, Glamour, Hunk and the Karizma ZMR. Earlier this year, the company commissioned a manufacturing plant in Colombia, which is its first such facility outside India.
Speaking during the launch event, Mr Munjal, MD and CEO of Hero MotoCorp told PTI, "We believe that the factory in Colombia will be a good hub for supply to other markets for us in Central and Latin America. We will get into manufacturing in Brazil. Argentina also requires us to manufacture locally, which is also on the cards.”
In India, Hero MotoCorp currently has three operational production facilities, while construction at the fourth site in Gujarat is expected to commence soon. The combined capacity of its plants in India will soon touch 76.5 lakh units, which will go up considerably once the Gujarat and the plant in South India becomes operational. Mr Munjal revealed that they were planning to enter the Brazilian market along with the Rio Olympics in 2016. The company has set a target of clocking 12 lakh units in global sales by 2020 and this rapid expansion in global markets shows its commitment towards achieving this target.
