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Brazil, the next target on the hit list of Hero Motocorp. After investing $70 million, the company will be starting its first fully-owned manufacturing facility in Columbia, South America, in the next coming two months. Now, Hero Motocorp is planning to enter the Brazilian Market by the year 2016 as this step would be strengthening the position of the company in the American market. The newly opened Columbia plant will cater its vicinal countries like Chili, Peru, Ecuador and Central America and Latin American market.
Pawan Munjal, CEO at Hero Motocorp said, "We are looking to enter the Brazilian market around the Olympics in 2016. We are developing some engines specifically for this market. It's an attractive market for us, Brazil is not only the largest market in Latin America, but also technically different from other markets as it uses ethanol.
Our current engines are not tuned for such fuel and so the engines are under modification with the help of AVL". As of now, the company is planning to enter the Brazilian market with its existing products.
The most important thing about the Brazilian market is that the country uses ethanol harmonized petrol. Hero Motocorp will be working on the same concept, and by keeping these things in mind the company needs to design and develop specific engines especially for Brazil.
After splitting from Honda in 2011, Hero Motocorp has raised its global presence and presently the company is selling its products across 18 countries including Egypt and Turkey. The company has its assembly units in Kenya, Tanzania and Uganda in East Africa, this has been established through its distributors. In 2013, the company has announced to enter 50 new markets by the year 2020 and 20 facilities over the globe with annual turnover of Rs 60,000 crore.
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