It has been two years since Hero MotoCorp’s split with its long-term joint venture partner, Honda. And contrary to what most of its critics predicted, it has retained its top position in the Indian two-wheeler market. Earlier this year, the company showcased a host of motorcycles from different segments which showed its urge to keep evolving. Now, it has been revealed that Hero MotoCorp is planning to eventually start manufacturing four-wheelers and commercial vehicles along with two-wheelers.
Mr. Pawan Munjal, the managing director and CEO of Hero MotoCorp revealed that getting into four wheelers and CVs is a part of its long term vision, though the cut-throat competition in the market has kept it away so far. Mr. Munjal says that they have been concentrating on improving local product development as well as expanding their footprint in Latin America and Africa.
Till it was bound by the joint venture with Honda, the only other market which the market catered to was Columbia. But now, Hero MotoCorp has been aggressively expanding into other global markets. As a part of this expansion, it is planning to set up its first fully-owned overseas plant in Colombia next year, which will cater to the Brazilian markets.
While the Southeast Asian countries also are big markets for two-wheelers, Mr. Munjal says that these markets currently are too competitive due to the stronghold established by Japanese manufacturers. While Hero MotoCorp has been associated with cricket, it is also planning to extend sponsorship to other sports like football in order to increase its exposure in foreign markets.
With respect to expansion in India, Mr. Munjal had recently revealed that the company is scouting for location in South India to set up a new plant which will help it increase its annual capacity to 12 million units. This plant will be the manufacturer’s sixth plant in the country and will be responsible for churning out 1.5 to 2 million two-wheelers every year.