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Hero MotoCorp will embark on its global drive as early as April-June this year, with plans to start exports to West and East Africa, and Latin America under the new brand.
A key pillar of its growth strategy after the separation with Japanese partner, Honda Motor, a year back, the export plans would fall under a new business arm created solely for the purpose – Hero International Business, sources said.
Other markets such as South-East Asia are also being actively looked at.
Mr Pawan Munjal, Managing Director and Chief Executive Officer, said the first set of new international distributors for the two-wheeler market leader have almost been finalised. In some markets, an assembly plant is also likely.
“We will be starting very soon … in a few months. We're looking at many export models, it has to be a combination. Some of these countries would need to have assembly depending on what the duty structure is,” he said.
Hero MotoCorp model
Models likely to be exported include bikes such as the CD range, Hunk and the CBZ Extreme.
The new overseas markets will see the ‘Hero Honda' brand being completely dropped, and replaced with Hero MotoCorp.
The existing portfolio with the new corporate brand had been showcased at the Auto Expo this year in January.
When under the 27-year-old joint venture (then known as Hero Honda), the company's exports had been restricted to the sub-continent and some Latin American markets such as Colombia – which would now continue.
Distribution
“In the joint venture structure, there was an arrangement that we could enter only certain markets and could sell only through the Honda network, which is why it's now taking us time to set up our own distribution,” Mr Munjal said.
With rival Bajaj Auto selling over 30 per cent of its production in the higher margin export markets, Hero hopes to quickly tap this opportunity by selling a million bikes by 2016-17, accounting for 10 per cent of its $10 billion revenue target by 2020.
Hero MotoCorp shares at the BSE were up 0.86 per cent to Rs 1,883.10 on Wednesday.
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