Aims to Launch Products in Italy, Spain, France in First Phase,
Followed by UK & Germany
Showcases Technological Excellence & Innovation at EICMA, Milan
Vice Chairman, Chief Executive Officer & Managing Director
Hero MotoCorp Ltd.
“Today, one out of every 10 bikes sold globally is a Hero bike and every second two-wheeler sold in India is from Hero. This places us in a unique position to expand our business into new markets across continents. Having already stamped our presence in Asia, Africa, Latin & Central America, we are now looking at stepping into the European market by the end of 2015 with our hybrid scooter Leap making its debut here. While we are looking for potential partners, we are also open to M&A opportunities to be able to make quick inroads in these markets. This is in line with our vision of making Hero a truly Global Brand in its range of quality products, scale of operations and geographical footprint.”
MILAN, ITALY – November 6, 2014 – (Motor Sports Newswire) – Hero MotoCorp Ltd (HMCL), the world’s largest manufacturer of two-wheelers, today announced its plans to enter the European markets by the end of 2015. The company made this announcement at “the biggest event in the world dedicated to two-wheelers,” organised by EICMA at Milan in Italy today. EICMA is the marketing body of Italy’s National Association of Bicycles, Motorcycles and Accessories (ANCMA).
In the first phase of its foray into Europe, Hero MotoCorp aims to launch its products in Italy, Spain and France; followed by the UK and Germany in the next phase of expansion. To begin with, the company will launch its first serial-hybrid scooter “Leap” in these markets, and subsequently bring more models including scooters and motorcycles.
The New Delhi (India)-headquartered Hero MotoCorp recently announced an investment of US$ 800 million in building capacity across the globe in the next few years. Expanding aggressively over the past three years, Hero MotoCorp is already present in over 20 countries across Central & South America, East & West Africa and Asia.
Italy is home to two of Hero’s strategic alliances – Engines Engineering and Magneti Marelli -both based at Bologna. Engines Engineering is a technology partner of Hero MotoCorp while the latter has a joint-venture with Magneti Marelli in India for developing fuel injection technologies.
In addition to the domestic market in India, Hero MotoCorp currently sells its products in Sri Lanka, Nepal, Bangladesh, Egypt and Turkey in Asia; Peru, Ecuador and Colombia in South America; Guatemala, Honduras, El Salvador and Nicaragua in Central America; Kenya, Mozambique, Tanzania and Uganda in East Africa; Burkina Faso, Ivory Coast, Democratic Republic of Congo and Angola in West Africa; and Ethiopia in North Africa.
Hero MotoCorp is setting up two overseas manufacturing plants in Colombia and Bangladesh that are expected to go on stream in 2015-16. In partnership with its local distributors, Hero MotoCorp has also set up assembly units in Kenya, Tanzania and Uganda.
In keeping with its vision to be a global brand, Hero MotoCorp is set to step into the US and Brazilian market by 2016. Last year, the company became the fastest company in the world to produce 50 million two-wheelers in cumulative production.
Hero MotoCorp has four state-of-the-art manufacturing facilities in India with its latest IGBC-certified platinum class ‘Garden Factory’ recently being commissioned at Neemrana in the northern Indian state of Rajasthan. With the ‘Garden Factory’ going on stream, the annual installed production capacity has gone up to over 7.5 million motorcycles and scooters.
HMCL is also in the process of building two more manufacturing plants in India. When operational, all these plants – including the ones in Colombia and Bangladesh – will take the total installed capacity of Hero MotoCorp to over 12 million units of two-wheelers.
By 2020, The company aims to be in over 50 countries with 20+ assembly facilities globally.