Hero MotoCorp is the number one 2-wheeler manufacturer in India currently competing head on with its erstwhile partner Honda Motorcycle and Scooters India (HMSI), which holds the third position in the Indian 2-wheeler market and hopes to achieve the top position in the coming years. While Hero MotoCorp is quite popular in India, the manufacturer is betting big for international markets like Africa, Central and Latin America, where dispatches have already started with a target of a million unit volume sales from the international markets in five years.
A range of Hero motorcycles between 100cc and 125cc range will be selling in the international markets through newly appointed distributors and channel partners in all the markets. Retail sales of Hero 2-wheelers will commence during the first quarter of the current fiscal year. Currently, Hero MotoCorp exports its 2-wheelers in countries including Colombia, Sri Lanka, Bangladesh and Nepal. Apart from increasing export operations, the company is also planning new launches, campaigns, capacity addition and network expansion to boost sales in India amidst the slowdown.
Hero MotoCorp has designated Rs. 1100/- crore for the fiscal year 2014 as capital expenditure, which includes an investment of around Rs. 600/- crore for the manufacturer’s upcoming fourth plant and global parts centre at Neemrana, Rajasthan. The 2-wheeler manufacturer will also be investing Rs. 100-150 crore for an integrated research and development centre at Kukas, which is near Jaipur, Rajasthan. Hero MotoCorp claims 4,68,283 units of sales in March 2013 over 5,28,290 units in the same month last year and the company has closed FY13 with 60,75,583 units over 62,00,000 units in FY12.