Companies

Hero MotoCorp vrooms into Argentina with four products

S Ronendra Singh New Delhi | Updated on January 12, 2018 Published on January 13, 2017

New geographies Pawan Munjal, MD & CEO, Hero MotoCorp, at the launch of the Glamour bike in Buenos Aires on Thursday

Makes global launch of ‘Glamour’ bike

Hero MotoCorp, the country’s largest two-wheeler manufacturer, has entered the Argentine market with the launch of its Glamour motorbike — its first-ever global launch of a new product outside India.

Glamour is known as Ignitor in Central and South American countries. Apart from Ignitor, the company also launched Dash scooter, Hunk and Hunk Sports motorbikes.

Argentina is the 35th global market which Hero has entered and, to begin with, the company has opened 40 dealerships. It will go up to 100 dealerships by the end of 2017.

“This is the farthest we have come in terms of distance from home. This is one more step in the direction of going global and achieving the ambition of having a presence in 50 global markets by 2020,” said Pawan Munjal, Chairman, MD and CEO of Hero MotoCorp.

The first global launch of a new motorcycle in Argentina reflects the importance of Argentina and Latin America for the company, Munjal said.

After separating from its erstwhile partner Honda in 2010, Hero MotoCorp had set itself an ambitious target to enter 50 new markets by 2020, set up 20 manufacturing facilities and reach an overall annual turnover of ₹60,000 crore. The company had also set an aim to achieve 10 per cent of its sales from export markets by 2017.

“We have set our global footprint over the past three years and are growing rapidly. Argentina will be an important market for us and we will shortly also launch electric vehicles and performance bikes,” said Munjal.

Munjal said although it is a late entrant in export markets — unlike Bajaj Auto or TVS Motor — Hero has come up with a ‘strong proposition’ in markets like Argentina. Bajaj is already present in South American countries, but it is selling its products like Chinese brands, he said. For instance, Chinese manufacturers are selling products under different brands on a ‘first come, first serve’ basis, but Hero will sell its products under its own brand with an assembly plant in Argentina.

The number of workshops for after-sales services and parts will also be far better than others, Munjal claimed, adding that the company is generating employment for locals through after-sale services.

The company has appointed Marwen SA as its distributor in Argentina.

Marwen, established in 2004, set up a manufacturing plant in Villa Rosa Province of Buenos Aires in 2015. The plant has a capacity of 5,000 units a year with plans for expansion.

The company has also signed up Argentine soccer legend Diego Simeone as brand ambassador. For Hero, he is the second global sports icon after Tiger Woods.

The Argentine market for two-wheelers fell from seven lakh units to five lakh units last year. Around 30 per cent of the overall market comes from the step-throughs segment and the rest from commuter motorcycles ranging between 100cc and 150cc, where Hero is strong.

The company could help in shaping up the industry with newer products and latest technology, Munjal said.

For instance, Argentina does not have too many regulations for two-wheelers in terms of homologation or emission norms, and Hero would have an advantage in fuel economy, as well as environment-friendly products whenever new regulations come in, he added.

(The writer is in Buenos Aires at the invitation of Hero MotoCorp)

Published on January 13, 2017
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