Hero MotoCorp will be setting up new manufacturing facilities in North and Latin America – the first Indian two-wheeler manufacturer to setup full-fledged factory outside India. The company has completely-knocked-down (CKD) facilities in some markets but Brazil, Columbia and Mexico will be the first markets to have a full-fledge manufacturing plant.
With these new plants, the company won’t not only sell its products in these markets, but will also sell its neighboring markets. Brazil, Columbia and Mexico have two-wheeler market size of 15 lakh, 6 lakh and 2.2 lakh units respectively making a very luring market for the Gurgaon based manufacturer. The facility in Columbia is expected to be operational by 2014 whereas the rest two units will happen in next few years.
"While so far we have set up CKD (completely-knocked down) assembly units in some markets, now we are looking for a very big role in at least three countries. These are Brazil and Colombia in LatAm and Mexico in North America," said Pawan Munjal, CEO & MD, Hero MotoCorp.
Hero MotoCorp is also aiming to get back its 50 per cent market share in the domestic market. They used to enjoy this figure few years ago but are at 42.85 per cent last fiscal year. The company recently announced that they have developed three new engines – 100cc, 110cc and 250cc which will power their current range of products and also future products.