Hero Motors looking to export two-wheelers

Posted By: Religare
Subscribe to GoodReturns

Hero Motors looking to export two-wheelers
Hero Honda (soon to be named Hero MotorCorp) is gearing up to step into overseas markets to enhance their global presence. The Munjals-owned company has identified Latin America, Africa and South East Asia as the key markets that could help the achieve its goal.

Such an announcement was expected after the company recently split from its 26-year old partner Honda; the agreement with the Japanese company prevented Hero to venture into any markets where Honda was selling two-wheelers.

"There is a common thread between the three export markets. These are high volume and commuter-driven markets and it's a quick-win for us," said Anil Dua, senior vice-president (marketing and sales) Hero Motor.

The company also has plans to launch three-wheelers in these markets. It is also looking at Nigeria as a probable candidate; Nigeria is already host to one of Hero Motor's biggest domestic rivals - Bajaj Auto that sells 21000 units every month in Nigeria. The move to export to overseas markets makes sense as the overseas two-wheeler market is about 50 million units as compared to India's 10 million units.

In fact, to successfully execute its plans in foreign countries without losing out on any market share in India, the company is looking to set up a fourth manufacturing facility - while the first three will cater to the domestic market, the new plant will be responsible for the exports.

Industry analysts believe that the country's leading two-wheeler manufacturer will struggle in the near future to grab a strong foothold in the foreign markets but will eventually succeed. The company has been experiencing a very productive year with over half a million units being sold every month since March.

View: Foreign markets will need to be studied and Hero Honda should check how many of its current models will have the advantage to be brought on foreign soil. Also there may be an issue with taking the current technology outside the country. The legal hassel must be understood.  

Read more about: hero honda motor, bse, nse, automobile
Story first published: Thursday, July 7, 2011, 9:30 [IST]
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'