India’s largest two-wheeler maker Hero MotoCorp has formulated a two-pronged strategy to grow its international presence and volumes in the coming years.
This comes at a time when two-wheeler exports from India have been registering a significant growth due to te growing acceptance of India-made two-wheelers across geographies.
“With our new strategy called R4 (Revitalize, Recalibrate, Revive and Revolutionize), the focus on our Global Business is very clear. Hero MotoCorp continues to invest in the development of new products for our international markets and we are determined to expand our global footprint. Our goal is to develop new markets and strengthen our market share in the existing ones by delivering superior products and enhanced customer experiences,” said Pawan Munjal, Chairman of the company, in the company’s latest annual report.
The company aims to strengthen its focus on the premium motorcycles and scooters segment in Bangladesh, Nepal and Latin America, while In the African markets it is revamping its product portfolio, growing the network and establishing its brand presence.
Hero MotoCorp ended FY21 with its highest-ever exports in any single month. The company exported 1,91,609 units in FY21, an increase of 7.5% over FY20 despite the impact of Covid-19.
The company terms its entry into Mexico, a key motorbike and scooter market, as a significant milestone in its global journey. With the Mexico entry, Hero MotoCorp’s global footprint reached 41 markets outside India. “With Grupo Salinas as our partner, this has enabled us to form one of the largest retail sales channels in the country. Our expectation is that Mexico will become a key international market for us in the foreseeable future,” he said.
The company has also appointed new distributor partners in Honduras and Nicaragua, while it has introduced a new product called Hunter in Nigeria. “The initial results are extremely promising, and we expect to gain significant market share in Nigeria,” added Munjal.
During this fiscal, Hero MotoCorp plans a big push across key markets –Nigeria, Kenya, and Uganda in Africa – with a revamped product line up, network expansion and sales promotions activities. It will also scale up market share in Colombia, Guatemala and Peru through network expansion, investments in brand building and product refreshes.
To support its expansion, the company will also scale up retail finance in key markets, while making related investments in important markets. The current fiscal will also see the company’s launch of Hunter in Nigeria and start of Mexico operations.
The company runs its factories in Bangladesh (with a capacity of 1.5 lakh units per annum) and Colombia (the factory has a capacity to produce 80,000 units per year).