Munjal (MD & CEO, Hero MotoCorp) was in California in May to seal a deal with FENALCA for an assembly plant. When Hero and Honda were together, FENALCA was representing both of them. Now, after the split Hero has chosen to stay with FENALCA. The plant is expected to take care of neighbouring countries around Colombia like Ecuador, Venezuela, Peru and even up to Chile.”
Hero MotoCorp is one of the first in the domestic auto industry to plan significant investments in South America, to counter rival Bajaj Auto’s strong export presence in Africa and Southeast Asia. “We have plans to achieve annual sales of 10 million units in next few years, nearly 10% of which we expect to come from our international business. To reach this ambitious target, we are initially focusing on markets where the volumes are large and products can be sold with minimum modifications. Thus, markets in Central and Latin America provide us a perfect platform,” Munjal said.
Hero recently added export markets like Guatemala, El Salvador, Honduras and Peru, with Ecuador to follow soon. The company already sells its two-wheelers in Colombia, where a manufacturing facility in Colombia will start by the middle of 2014.