With global expansion at the core of its long-term strategy, Hero Motorcorp had announced its target for 2020 a couple of years ago. The objective was to expand its presence into 50 international markets, set up 20 manufacturing plants and generate an annual turnover of INR 60,000 crores by the turn of the decade.
The world’s largest two wheeler maker (in terms of volume) is currently reviewing its 2020 target as things didn’t quite progress as expected.
Talking to ET, Pawan Munjal, CEO, Hero Motocorp, stated that the first few years of the strategy have been challenging since most of its international markets have oil-dependent economies. He added that currency depreciation and high inflation have affected the size of the market. Conditions are not steady in markets like Africa, and Central and America. Such a scenario makes it more challenging to achieve the target.
However, the head honcho is confident of its newly acquired product development capabilities. Hero just launched the new Splendor iSmart 110 which is the first ever homegrown motorcycle. The brand’s new Centre for Innovation and Technology (CIT) in Jaipur is equipped to develop a new product in-house from scratch.
By the end of this financial year, Hero Motocorp will phase out the models that are under the license agreement with Honda. The Impulse, Passion Pro, Igniter, etc., will make way for new homegrown products.