Hero MotoCorp is turning super aggressive and has a slew of plans for both Indian and international markets. India’s largest automaker has just rolled out its 50 millionth 2-wheeler (5 crores) and is now looking forward to the 100 millionth mark. Hero MotoCorp had a turnover of Rs. 24,000 crores last fiscal year and plans to increase it to Rs. 60,000 crores by 2020, a time by which the company expects to sell its motorcycles in more than 50 countries across the globe. To achieve this feat, the 2-wheeler supremo plans to have 20 manufacturing facilities worldwide.
By the end of the year, Hero MotoCorp will enter 10 more markets across the world and the 2-wheeler giant plans to bring in 10 percent sales from exports by 2017. By next year itself, Hero will have six assembly lines across three continents. Currently the company has three plants with a total production capacity of 62 lakh units per annum but two new plants are coming up in Rajasthan and Gujarat. By 2020, the production capacity will touch 1.2 crore units per year. This will help Hero MotoCorp serve the growing demand for its products.
Hero MotoCorp also wants back its 50 percent market share which it enjoyed in the last decade. Currently Hero’s market share has dropped to under 43 percent but the company is confident of regaining market share and also exceeding their previous high. This confidence stems from the upcoming products which are set to hit roads in the next 12 months. Hero has 12 new models lined up for the Indian market, which are all indigenously developed and will be launched starting from September.
Hero will also optimise resources to boost margins amidst increasing input costs. Clearly Honda was ‘DREAM’ing when they boldly went ahead and claimed they will occupy the numero uno spot by 2016. Hero is not going to make it any easy for the Japanese manufacturer.
