Hero MotoCorp set to add new export markets, increase production capacity

Two-wheeler market leader Hero MotoCorp is looking at rapidly expanding its presence overseas.

Nigeria and Mexico are two countries that will be added to Hero's list of export markets. Pawan Munjal, CMD and CEO of Hero MotoCorp, told reporters that the launch in Nigeria will take place this month and the Mexico entry will be very soon.

Hero MotoCorp embarked on a market expansion drive soon after it diluted the joint venture with Honda five years ago. The agreement with Honda also restricted exports by the joint venture. Now Hero exports to 26-28 countries.

The exports business will also play a key role in the company's ambition of selling 10 million units annually by 2017-18. Which means it will also expand production capacity. "We are still looking at putting capacities in place," says Munjal. The company has a cumulative annual production capacity of 8.1 million units and sold over 6.6 million two-wheelers during 2014-15.

It is possible that production capacity may be ramped up at Hero MotoCorp's Dharuhera plant. The plant has found new space as the company's R&D operations have been shifted from Dharuhera to the Centre of Innovation and Technology, the new engineering and R&D hub at Kukas, Rajasthan.

Also read: Hero MotoCorp eyes big gains from all-new Tech Centre in Jaipur