Hero MotoCorp finalizes plans for Argentina bike plant?
India’s largest two-wheeler maker, Hero MotoCorp, plans to set up a new plant in Argentina which is the second largest market in the region after Brazil. These plans are in final stages of development.
A new Hero MotoCorp motorcycle plant in Argentina is underway. Financial Express reportsÂ Hero MotoCorp VPÂ Pawan Munjal, and VP Global Business Deepak Mokashi have visited Argentina and met with Debora Giorgi, Argentinaâ€™s Minister for Industry.Â This new plant will not only benefit the country but the entire region in a big way. However no details on investment and when the plant will be completedÂ have been revealed.
Argentina is an important market for Hero MotoCorp. However, there are certain constraints such as a volatile currency rate and the guarantee of sustainable volumes to be contended with prior to this new plant coming into effect.
The company will also have to rely on local manufacturing and sourcing of parts as the country had imposed restriction on imports in 2012 so as to maintain a right trade balance. In Argentina, Hero MotoCorp will find competition from Bajaj Auto who actively sell its Pulsar and Avenger brands in the country.
Hero MotoCorp also plans a new plant in Columbia which will be commissioned by mid 2015. Into this plant, investment of $70 million has been announced while the plant will have initial capacity of 78,000 units per annum which will be augmented to 1.5 lakh units over the next few years. Hero MotoCorp plants are also being planned in Brazil, Bangladesh, Tanzania, Uganda and Kenya with local partners.