Hero MotoCorp Ltd, the world’s largest two-wheeler manufacturer, recently announced commencement of its operations in Latin America and Africa.
Mr. Pawan Munjal, Managing Director & Chief Executive Officer, Hero MotoCorp Ltd., said “We have started despatches to our new international markets in Central and Latin America and Africa. Our first consignments of two-wheelers have already been shipped to Peru in Latin America, El Salvador, Guatemala and Honduras in Central America and to Burkina Faso and Ivory Coast in Africa. We shall also be despatching the first lot of our two-wheelers to Kenya later this month.”
The company has already short-listed as many as 30 countries across Latin America, Central America, Africa and South East Asia.
Colombia is the only country in Latin America where Hero MotoCorp currently exports to. The other international markets where Hero two-wheelers are sold include Sri Lanka, Bangladesh and Nepal.
The Hero motorcycles to be sold in these markets include a mix of models from the 100cc and 125cc range. The company has already appointed new distributors and channel partners in all these markets, where retail sales of the Hero two-wheelers is likely to commence in the first quarter of this fiscal.
Hero MotoCorp has also reported sales of 468,283 units of two-wheelers in the month of March 2013. The company has closed the financial year 2012-13 with 60,75,583 units. Hero MotoCorp had sold 5,28,290 units in the corresponding month last year, and 6.2 million in FY 2011-12.
Commenting on the sales performance, Mr. Anil Dua, Senior Vice-President (Marketing & Sales), Hero MotoCorp Ltd said, “Indian auto industry faced acute slowdown in FY’13. It continues to reel under the adversities of persistent inflation, firm interest rates, rising fuel prices and negative consumer sentiment. All these factors have adversely impacted the growth of the industry and our sales volumes. Going forward, we have planned new launches, new campaigns, capacity addition and network expansion to boost the sentiment of the domestic industry and accelerate growth. In the new financial year, we will also commence our international operations in several new markets to work towards our global vision.”
Hero MotoCorp has earmarked Rs. 1100 crore as capital expenditure for FY’14. It includes an investment of about Rs 600 crore on company’s upcoming 4th plant and global parts centre at Neemrana, and Rs 100-150 crore on a state-of-the-art integrated R&D centre at Kukas.