Hero MotoCorp is All Set to Go on its Own Way

Hero MotoCorp, world’s largest bike manufacturer is ready to make its path all alone now. Hero and Honda decided to part their ways in 2010, however their technical collaboration is in effect till 2014. The Indian bike mogul, which is known for reliable bikes is dependent solely on Honda as of now, but now they have to find the way out. It’s the biggest question that who will support Hero MotoCorp? And to answer this they made some important announcements recently. Hero has collaborated with three major R&D companies EBR, AVL and Engines Engineering. Mr. Anil Dua, Senior Vice President (Marketing and Sales) Hero MotoCorp said, "We have technology partners like EBR, AVL and Engines Engineering.

A lot of collaborations are already taking place and we will be launching the first product with our own IPR through these collaborations by 2013-14." Besides this, the company will be introducing its bikes in Africa and Latin America in the fourth quarter of this fiscal by customising the existing ones for these markets. The company will roll out many more such products in 2014-15, he added. However, he refused to comment on which bikes are going to be launched. He further said, "With EBR, we are focusing on the premium bikes, while with AVL and Engines Engineering, we are focusing in the other segments. We also have our own R&D, focusing on new product development."

Earlier, it entered into technology sourcing pact with US-based Erik Buell Racing (EBR) as it looked to strengthen presence in the high-end bike segment. Later, it also tied up with Austrian engine developer AVL.  Talking about its export markets, Dua said: "We are going to look at the customers in African and Latin American markets and are going to tailor-made for them." The company is looking at the motorcycle taxi segment in Africa, therefore, "we have to do customisation of products in our existing portfolio to suit that market", he added. Dua also said the company is looking beyond Africa and Latin America in order to increase its sales volume globally, as part of its plans to sell 10 million units in the next five years with exports to be about 10 per cent of its total sales.

Talking about the upcoming festive season, he said: "The market is down, but usually during the festive season sales pick up. It is unlikely that we will have a stupendous double-digit growth during the festive season, but I do believe it will be a single-digit growth."  During the July-September period, the overall industry sales were down by five per cent and Hero MotoCorp had adjusted its "production by two lakh units", he added. "...but going forward, with sales picking up, the company expects its plants to run in full capacity during the third quarter," Dua said.