In a landmark development, the world’s largest two-wheeler manufacturer, Hero MotoCorp Ltd. (HMCL), recently had announced forging a strategic partnership with Erik Buell Racing (EBR) of the US, encompassing multiple areas of collaboration to help them develop high end bikes.
After the the major announcement regarding their tie-up with Erik Buel Racing for technological assistance and cutting edge performance ,Hero Motocorp later announced that it would be making its own engines by teaming up with the world’s largest privately-owned engine developer, AVL of Austria , to develop technology for its bread-and-butter 100cc bikes such as Splendor and Passion.
Hero MotoCorp has finally decided to get things moving with regards to its technology deficit and now they are on an expansion spree , in search of potential markets to globalise their brand . This time they are heading to Africa to set up manufacturing and assembly plants there . Hero Motocorp have identified growth markets in Africa and thats the reason they think they have good potential to take this market by storm .During their partnership with Honda , they were restricted to India . Now that they have the opportunity to globalise their brand , we must say they are leaving no stones unturned . And mind you this is just the beginning of Hero Motocorp's expansion spree , Munjal said Hero MotoCorp had sent teams to the continent to find out potential markets for two-wheelers.
"We believe their is a unique opportunity for us to go and do business in two-wheeler segment there. Many of the African countries have shown rapid growth in the two-wheeler segment. Or teams have been visiting almost all of Africa."Mujal said that although many foreign firms were operating there, the company's operational capability and production capacity would work in its favour.
"Many of our Indian friends have gone there. There are also many Chinese and Thai companies present there, even older and larger Japanese players are there. But because of the way we operate, our scale and volume, we feel Africa offers a great promise."After their supremacy in India in the two wheeler segment for nearly 10 years ,the company has decided to go global ,they are currently eying new markets such as Africa, Southeast Asia and Latin America .
