Hero MotoCorp is now completely free from all the export restrictions that it was facing in the earlier days which we remember to be the days of Hero Honda from its ex – promoter from Japan – Honda.
India’s largest two wheeler maker Hero MotoCorp has announced that it aims to sell as much as ten lakh units in the overseas markets in the next 5-6 years. The company has also prepared a list of markets which it has decided to enter and later to dominate.
To mention its plans for the domestic front, HMC is looking forward to invest a whooping sum of INR 1,000 crore to set up two new manufacturing facilities besides expanding the output of three of its existing plants.
Regarding the plans of the company, Mr. Anil Dua, Senior Vice President (Marketing & Sales), Hero MotoCorp said, “We are looking at an exponential increase in export numbers … In 5-6 years of time, we aim to sell a million bikes (every year) in international markets, which will be 10 per cent of our total business.” “HMC current exports contribution is less than 2 per cent of total sales”, he then added. The sales output stood at a mindboggling figure of 54,02,444 units during the financial year 2010-11.
When asked about the nations and markets where HMS is planning to enter, he said, “We have been approached by several partners for distribution and assembly. We have already shortlisted some partners.” He refused to disclose any further detail on it. The company is looking at exporting its products to Latin America, Africa and South East Asian nations, he then added.
Answering a question posted on expanding the production capacities, Mr.Ravi Sud, Chief Financial Officer, Hero MotoCorp said, “When we talk of capacity, we talk in slabs of 7,50,000 units. So, 1.5 million units capacity plants. In a phased manner, it will cost close to around Rs 1,000 crore.” He later added, “The company will announce the location of its fourth plant within next few weeks.”
Author – BikeAdvice.in