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Hero Motor's Export Plans Post Honda
All the three markets shortlisted by Hero Motors are emerging markets and have huge potential for growth. The two-wheeler manufacturer wants to make use of its experience of building inexpensive commuter vehicles to tap these markets. Anil Dua, the senior vice president (Marketing and Sales) at Hero Motors said: “There is a common thread between the three export markets. These are high volume and commuter-driven markets and it's a quick-win for us."
Mr Dua heads the 12-member panel which finalized the export strategy. He is also leading the exercise to identify potential partners. He added: “We are visiting interested parties and a decision will be taken soon on whether to look for local assembly or export products from here."
India's largest two-wheeler company has identified Latin America, Africa and South-East Asia as its bikes fit into the preferences of customers in these markets growing at the rate of 10-15%. Hero Motors is also contemplating launching its three wheelers in Africa.
While Chinese bike manufacturers dominate the African market, Baja Auto has also a firm footing with monthly sales of 21,000 units. Hero Motors intends to introduce low cost bikes in Africa that offer high quality and mileage.
Hero Motors already exports its products to South Asia, Bangladesh, Sri Lanka and Nepal. Hero Motors was unable to export its products to countries where its joint venture partner Honda sold its vehicles.
Analysts believe Hero Motors will face stiff competition from Bajaj Auto, TVS and former partner Honda in India. By concentrating on overseas markets and exports India's largest bike manufacturer intends to placate this challenge. Hero Motors will soon start building its fourth manufacturing plant in India to cater to its export requirements.
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