Hero MotoCorp plans launch of entry level scooter in the US
Hero MotoCorp Limited, formerly Hero Honda, based in India, is the worldâ€™s largest and leading manufacturer of motorcycles and scooters. The company has cemented its position in Indian markets and now gears up for an global expansion plan which will see their reach extend to 50 countries by 2020.
Under this plan, Hero MotoCorp plans entry in the US in 2015 with entry level bikes and scooters in the 100cc and 125 cc range. These will include models such as Splendor and Passion. Launch in Brazil is also scheduled for 2016 while the company is about to start work at its first fully owned overseas manufacturing plant in Columbia at an investment of $70 million.
Following successful launch in 18 global markets in the past 18 months, Hero MotoCorp is confident of its acceptance and success in the US which will be done through Erik Buell Racing (EBR) in which the company has a 49.2% stake. EBR has commenced appointment of dealerships in the US.
Hero MotoCorp will commence sales in the US in 2015 with an aim to create a niche market for its high performance products, guaranteed to appeal to sports bike enthusiasts in the country. Though US has its own lionâ€™s share of high powered bikes, Hero MotoCorp will initially target smaller cities and inter city commuting segment with the companyâ€™s current lineup undergoing homologation to certify road worthiness for their range in US.
In India, Hero MotoCorp has four plants, two in Haryana and one each in Haridwar and Neemrana while a new plant in Gujarat will commence operations in 2015. The company has also tied up with four partners EBR, Austriaâ€™s AVL, Italyâ€™s Engines Engineering and Fiat groupâ€™s Magneti Marelli for the development of a new vehicle technology for which the company has invested INR 450 crores in a new R&D center near Jaipur.