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.
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.
[Source: Financial Express]