India’s largest two-wheeler manufacturer, Hero Motocorp, is working on its global expansion plan. The company plans to enter 20 new markets by the end of this fiscal year.
The motorcycle major will finalise a joint-venture to set up a manufacturing facility in Colombia by March-end; the plant will cater to the other Latin American markets as well.
Hero Motocorp MD and CEO Pawan Munjal told PTI that the focus is on global market expansion at the moment. The first quarter of this year they will be catering to Ethiopia, Turkey and Nicaragua in Central America.
"In Tanzania and Uganda, we will have local assemblies just as we have in Kenya. Similarly, in Bangladesh also we will have local assembly operations," Munjal said.
The assembly operations in Tanzania and Uganda are being set up whereas the plant in Bangladesh will be operational later this year. The two-wheelers however have been dispatched to Barundi, Bangladesh, Egypt, Ecuador, Tanzania and Uganda.
Talking about the Colombian plans he said,"There is a requirement for us to do manufacturing to a certain extent under the local regulations. We are in the process of finalising an agreement for a joint- venture, which should happen in the first quarter of 2014."
The company, in July last year, announced plans to enter 50 markets by end of 2020 by adding 20 new plants across the world. They are targeting sales to hit the 10 million mark by 2020 having achieved the milestone of 5 million motorcycles sold last year; alongwith a target turnover of Rs 60,000 crore. Last fiscal the turnover of the company stood at Rs 24,000 crore. Hero Motor Corp is now targeting a 10 per cent of annual sales to come from export markets at around one million.
