Hero MotoCorp Losing Numbers in India; Shifting Attention to Global Market

The effects of automobile slowdown has now become evident on the Indian two-wheeler industry as well, the country's largest two-wheeler maker Hero MotoCorp today reported a 11.36 per cent decline in total sales at 4,68,283 units for March. Hero has sold 5,28,290 units in the same month last year. Hero also reported a fall of 2 per cent to 61 lakh units, from 62 lakh units in FY'12 .Hero MotoCorp Senior Vice President (Marketing and Sales) Anil Dua said: "Indian auto industry faced acute slowdown in FY'13. It continues to reel under the adversities of persistent inflation, firm interest rates, rising fuel prices and negative consumer sentiment."

All these factors have adversely affected the growth of the industry and the company's sales volumes, he added. "Going forward, we have planned new launches, new campaigns, capacity addition and network expansion to boost the sentiment of the domestic industry and accelerate growth. In the new financial year, we will also commence our international operations in several new markets to work towards our global vision," Dua said.

To make things better Hero MotoCorp has started its global operations to achieve its stated objective of exporting a million unit over the next five years, World's largest two wheeler maker, Hero MotoCorp commenced its export operations to Africa, Latin and Central America. Pawan Munjal, MD & CEO, Hero MotoCorp Ltd. said,  "We have started despatches to our new international markets in Central and Latin America and Africa. Our first consignments of two-wheelers have already been shipped to Peru in Latin America, El Salvador, Guatemala and Honduras in Central America and to Burkina Faso and Ivory Coast in Africa. We shall also be despatching the first lot of our two-wheelers to Kenya too later this month."

Hero is planning to sell its commuter bikes in these countries, which will include 100cc and 125cc bikes. For this, the company has already appointed new distributors and channel partners in all these markets. The retail operations for the Hero two-wheelers are likely to commence in the first quarter of this fiscal. These global operation will help Hero MotoCorp to reach its vision of reaching a total of 10 million unit volumes in a few year. and garnering a million units - 10 per cent of that - from international business. To meet this ambitious objective, the company has already short-listed as many as 30 countries across Latin America, Central America, Africa and South East Asia. Colombia is the only country in Latin America where Hero MotoCorp currently exports. The other international markets where Hero two-wheelers are sold include Sri Lanka, Bangladesh and Nepal.  

Source: ET