Report – Following Colombia, Hero Motocorp finalizing plans for a plant in Argentina

Posted on: Aug 8, 2014 - 3:41pm IST

Hero Motocorp’s Argentinian plant is likely to have a local partner.

After laying the foundation stone for a manufacturing plant in Colombia last month, India’s leading two wheeler maker is finalizing plans for a facility in Argentina, says a Financial Express report.

According to the newspaper’s “official sources”, the top management of Hero Motorcorp met with Argentinian government officials last month to firm up plans. The Argentinian plant is likely to have a local partner.

Hero Xtreme Sports side
Argentina is the second largest two wheeler market in South America and hence warrants a local plant.

Mr. Pawan Munjal, MD and vice chairman, Hero Motocorp, has acknowledged the need for a manufacturing presence in Argentina earlier. With a market size of 7.5 lakh units in 2013, the country is the second largest two wheeler market in South America, after Brazil. In 2012, Argentina imposed restrictions on imports which makes local manufacturing necessary for volume players.

Further details like the location of the plant and the size of the investment are under wraps. In addition to Colombia and Argentina, Hero Motocorp will also set up shop in Brazil in order to make inroads into the market which is dominated by technology partner Honda.

By 2020, the Indian two wheeler giant is planning to achieve a turnover of INR 60,000 crores. The company is planning to reach there by expanding its presence to 50 countries with manufacturing units in 20 of them.

Hero Passion Pro – Image Gallery

[Source: Financial Express]

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One thought on “Report – Following Colombia, Hero Motocorp finalizing plans for a plant in Argentina

  1. Dr. Nayak says:

    Problem with Hero is their lack of high powered motor cycles and Quadra cycles/ off road four wheelers to compete with the 800 pound gorilla. I don’t see any plans from Hero to get into the Quadra cycle/off road four wheelers. If they have to compete with their Ex. they must bring this into the equation as they are intertwined in people’s mind in north/south American consumers. How can you compete if you don’t even have a 400 cc bike (forget about a flagship 1100 cc bike) that is mass produced in India? It takes few years to develop engines from ground up and we have not seen any development in India to brag about except for products from the EB of USA. EB may help in this regard but at the end of the day it is “No Hero”. Unless Hero comes up with 800 to 1200 cc bike in the price range of 3.0 L or below in India in the next year or so and use it as a proving ground, I think it will be too late and most likely they will lose the momentum. I know it is just a few years that they separated from the big boy, but I don’t see a concrete plan based on these commonsense ideas. All I can think is that they may have too many MBA’s running the show.

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About the Author
Nithyanandh
Nithyanandh K

As a toddler, those wheeled machinery fascinated me even before I knew what they’re called as! So here I'm, petrolhead by birth, Mechanical engineer by qualification and automotive reporter by profession!