Hero Honda is planning to export motorcycles to Tanzania of East South Africa. Tanzania, whose half of national income comes from Agriculture. Agriculture in Tanzania is dominated by smallholder farmers. Hero Honda sees a large market in these farmers for bikes such as CD Deluxe and Splendor.
While addressing the team of African journalist, Mr. Brijmohan Lal, Chairman, Hero Honda said “We have this week dispatched two marketing executives to Tanzania to study the market and look into the possibility of exporting our number one brand, Splendor there. The motorbike was ideal for tough roads in rural area and had been selling like hot cake in India where in November last year, the company rolled out the 11th million units and it was the largest single brand in the world. Part of the Green Revolution that India underwent has been attributed to this motorcycle for its ability to easily maneuver through the farms and recommended for any country with similar terrain and wants to follow the same route”
He also said that Hero Honda Company which had managed to meet the domestic requirement was seriously looking or markets in Africa. However he ruled out the possibility of establishing plant in East Africa at the moment until a thorough assessment was conducted and they would have to look for people to make the parts or else import them from India.
Notably the talk of Honda exiting Hero Honda joint venture is going on. Currently Hero Honda cannot export in other countries due to Honda’s presence in joint venture but as Honda will exit the joint venture there will be no restriction on export for Hero Honda. Indeed, such move from Hero Honda Company clearly indicating that Honda will exit the joint venture.
