Hero Motocorp to venture into Nigeria, Argentina and Mexico this fiscal
Hero Motocorp is in the process of consolidating its global (by volumes) by foraying into several new high volume international markets. By 2020, the Indian two wheeler manufacturer plans to have presence in over 50 international markets with local assembly operations in several of them.
Speaking to PTI, Hero Motorcorp’s CFO Ravi Sud, revealed that the company will venture into Nigeria in the third quarter of this financial year, followed by Argentina and Mexico towards the end of the year (fiscal). He also revealed that an official distributor has already been appointed for Nigeria which is the largest two wheeler market in Africa with a size of 1.5 million units per annum.
Argentina and Mexico two wheeler markets have a size of half a million units a year each, so by the end of this fiscal, Hero Motocorp will be a key player in three international markets which have a combined size of 2.5 million units per year. These three primary markets will be crucial for Hero Motocorp to achieve its overseas sales target of 1.2 million units by 2020.
As of now, the company sells its two wheeler across 24 international markets in Africa, Asia, and, Central and South America. In order to negate the effects of fluctuating domestic demand caused by poor rural market performance, and increasing competition, Hero Motocorp is betting big on its international business to keep the bottom line intact.
Via – Moneycontrol.com