NewsReaper

NEW DELHI: Free from export restrictions imposed by its ex-promoter Honda, India's largest two-wheeler maker Hero MotoCorp today said it aims to sell 10 lakh units in the overseas markets in the next 5-6 years.

The company, earlier known as Hero Honda, has already shortlisted some players to expand its export markets in a big way in the future.

On the domestic front, the company is looking to invest about Rs 1,000 crore to set up two new facilities besides expanding the output of three existing plants.

Addressing analysts in a conference call, Hero MotoCorp Senior Vice President (Marketing and Sales) Anil Dua said: "We are looking at an exponential increase in export numbers ... In 5-6 years of time, we aim to sell a million bikes (every year) in international markets, which will be 10 per cent of our total business."

Currently, exports contribute less than 2 per cent of total sales, he added.

The company had sold a total of 54,02,444 units during 2010-11 financial year.

"We have been approached by several partners for distribution and assembly. We have already shortlisted some partners," Dua said without giving further details.

The company is looking at exporting its products to Latin America, Africa and South East Asian nations, he added.

Asked about investment that Hero MotoCorp might put into develop its export bases, Dua said the firm will invest in future, but now it will not financially support its channel partners.

On the plans for setting up of two new factories and expanding the existing capacities, Hero MotoCorp Chief Financial Officer Ravi Sud said : "When we talk of capacity, we talk in slabs of 7,50,000 units. So, 1.5 million units capacity plants. In a phased manner, it will cost close to around Rs 1,000 crore."

The company will announce the location of its fourth plant within "next few weeks", he added.

Source - Hero MotoCorp aims export of 10 lakh units in 5-6 yrs - The Economic Times

Samarth 619

I think its beneficial this way, than it was earlier during the tie up. Think about it guys:

1. They can still license Honda's bikes (like Impulse) without any extra conditions, like give us royalty, don't sell it in big cities, etc, etc.

2. And the Honda reliability is still there in their products, so the aware customer's opinion won't change that much.

Hero will still sell! (Specially with Honda's waiting periods which are comparable to a typical human pregnancy period. Book her now and get her 9 months later.)

3. And they are more free to take decisions on their own.

4. No more giving your income's part (the royalties) to Honda..

Hero must be feeling like one feels after getting divorced from a nagging wife...
Except that this wife (Honda) has now become a competitor/ enemy, so apna Hero can't "afford" to forget the ex-partner.

Satyamzma

Dhak Dhak Go...Hero getting all the success they actually deserve

__________________
Don't Honk Unnecessarily

Digital_shubhi

It would be tough for them unless they launch some real good motorcycles... Not just toys or some old school bikes !

__________________
2000 - Hero Honda Splendor
2010 - Pulsar 220
2012 - Ninja 250R or CBR 250R (coming Up)

111diablo111

hero has to make a strong portfolio to enjoy the success which they had in past as HH..i wish them success

__________________
Karizma ZMR
Apache RTR160