Hero MotoCorp which is the world’s second largest two-wheeler manufacturer by volume has revealed its expansion plans. After ending the contract with Honda, Hero MotoCorp has gone aggressive and has teamed up with Erik Buell Racing (EBR) to develop high performance bikes based on the requirements of customers globally. The Indian motorcycle manufacturer is all set to enter the Latin American market and it will be the first Indian automaker to start its manufacturing operations in Latin America.
The Latin American market will be one of the major markets for Hero MotoCorp and the move to set up a new manufacturing plant there will help the manufacturer to emerge as a strong global player in the global motorcycle industry. Hero MotoCorp has completed all the formalities for setting up a manufacturing plant in Columbia with an initial investment of $150 million (Rs 900 crores). Columbia is one of the fastest growing two-wheeler markets in Latin America.
The new manufacturing facility in Columbia will be crucial for the manufacturer’s growth in Central and South American markets and will serve them globally. The company will have the first mover advantage and setting up manufacturing bases across continents will help it achieve cost competitiveness. Though the product portfolio is not revealed yet, the recently updated product lineup showcased at the 2014 Auto Expo will initially make its debut in the Latin American market.