Hero MotoCorp, India’s top selling two wheeler manufacturer, after having a successful history now move forward to make a brighter future. The brand is targeting to 50 global markets by 2020. To attain, the goal Hero has moved to its 35th market-Argentina and commenced its maiden dealership too. There at an event in Buenos Aires, the bike maker has taken the curtains off from the first global product launch outside India. It has launched a next-generation 125cc Glamour, which will be retailed in Argentina and other Latin American markets like Colombia and Peru. "We have a huge focus on South America, as we believe we will get substantial volumes from the region. But even so, in the short term only 10 per cent of our overall sales will come from outside India." Said Pawan Munjal Chairman, MD, and CEO, Hero MotoCorp.
Hero’s Argentina lineup will consists of four products- the Ignitor (Glamour), Hunk, Hunk Sports and the sole scooter offering- Dash (known as the Maestro Edge in India), which will be sold by its distribution partner Marwen SA. The company will use the existing production facility of Marwen based at Villa Rosa in Buenos Aires province to assemble motorcycles. Manufactured kits will be shipped to this plant and will produce 5000 bikes in a year. Once the Colombian operations commence, Hero will be able to increase local manufacturing of parts as that is beneficial in keeping the cost low.
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If talks about the Argentina two-wheeler market, it used to consume 700,000 units in a year that reduces to 500,000 units owing to the bad economy in the country. In near future, the economic condition of the country is appearing to improve as the new government is looking forward to it. Meanwhile, Hero has plans to open 40 dealerships as an immediate response and 95 dealerships target across Argentina by the end of this year.
Mr. Pawan Munjal, Chairman, MD & CEO, Hero MotoCorp told NDTV, "We will differentiate our products on after sales and fuel economy. We hold a definite edge over Chinese brands and products on performance, parts, durability and distribution models." To compete with other fellow Indian brands like Bajaj, Honda and Suzuki are also selling their bikes in Argentina.
Apart from this, Hero is eyeing to enter other South American markets like Brazil and Chile. But, for now, its main focus is to look at beginning operations in Mexico as it is a voluminous market in the Latin American region. But the failed partnership issue in Mexico turned out in delay to step in that country. Mr. Munjal answered when asked about the Mexico emergence, as soon as possible, Hero will start their operations too there. An introduction of a manufacturing facility in Bangladesh is also projected in March 2017.