Hero Moto Corp Have to Cross Three Mainstreams to Enter Export Market
Hero Honda News : Hero Moto Corp has set high standards for itself. The company recently announced that they were looking at sales of 10 million units in the next five years with a turnover of USD 10 billion turnover.
Out of this, they are hoping that 10% of the revenue will come from exports from 30 countries in Latin America, South East Asia and Africa.
Hero Moto Reports
According to reports that it might not be all smooth sailing. The company might be able to meet its current fiscal target of 6 million units, but things look difficult going forward because the company could be stretched on capacity. For over a year now, the company has been scouring for a new plant location, but to no avail. Since it typically it takes around 12-18 month to set up a plant, the capacity bottleneck might impact the FY13 target of the company. With stretched domestic capacity, the export target of the company will also be impacted.
Hero Moto Plans
Another factor working against Hero Moto Corp is the growing competition in the two-wheeler space. Honda Motorcycle and Scooter India (HMSI) has announced aggressive expansion plans, looking at 4 million capacity by 2013. They are also looking a launching multiple bikes in the 100cc space, which is pretty much dominated by Hero Moto Corp at this point in time. As far as dealer expansion is concerned, they have targeted a 200% jump in the next two years. Even Bajaj Auto is looking at expanding its production capacity to 5 million units by the next fiscal.
Hero Moto Plant Location
So with competition getting quite fierce, Hero Moto Corp will have to soon finalize the plant location in order to hold on to it?s leadership position in the domestic market and make some mark in exports
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