Hero MotoCorp eyes 50 new markets, Rs. 60,000 crore turnover by 2020

Friday 09 August 2013, 12:03 PM by

Hero MotoCorp, India's largest two-wheeler manufacturer, has expressed its future plans of entering 50 new markets by the end of this decade. Also, the auto maker has set up a target of establishing 20 production units all over the world, taking its yearly turnover to Rs. 60,000 crore. Being a part of the ambitious expansion plans, Hero MotoCorp said that it will also set up 6 assembly lines across 3 continents by the end of 2014. It must be noted that in last fiscal, turnover of the company stood at around Rs. 24,000 crore.

Hero MotoCorp eyes 50 new markets, Rs. 60,000 crore turnover by 2020 | CarTrade.com
Hero MotoCorp eyes 50 new markets, Rs. 60,000 crore turnover by 2020

Expressing his views on the new development, the Managing Director and Chief Executive Officer of Hero MotoCorp, Pawan Munjal was quoted as saying, “We will be selling in 50-plus countries by 2020. To top it all, I am talking of an annual turnover of Rs. 60,000 crore.”

Interestingly, Hero MotoCorp recently marked its presence in the African continent by introducing bikes in Kenya. Prior to this development, the reach of Hero MotoCorp was limited to Colombia in Latin America and India's neighbouring countries like Sri Lanka, Bangladesh and Nepal. “Between January and March 2014, we will launch some more additional markets, some in Africa, some in the Caribbean and Central American countries,” he said.

Of late, the auto maker rolled out its 50 millionth motorcycle, and said that it is now looking towards reporting the 100 million mark soon. “I am now looking ahead at 100 million cumulative figure by 2020 with 20 manufacturing facilities across the globe. We are aiming for 10 per cent of our sales to come from export markets by 2017,” Munjal said.

Speaking on the future plans of Hero MotoCorp, he said, “By the year 2020, we will have annual production of 12 million motorcycles and scooters every year. This will come from 20 assembly lines inside the country and outside the country.”

In the last fiscal, the total production of the auto maker stood at 6.2 million units. As of now, the company operates through its three plants, which are located in Gurgaon, Daruhera and Haridwar. In 2012, Hero MotoCorp declared that it will establish a new fourth plant at Neemrana (Rajasthan), with fifth plant in Gujarat. Reportedly, all these expansion plans are a part of Rs. 2,500 crore investment, which will increase the potential of production and research & development.

“And by next year, we will have six assembly lines spread across three continents. In next two quarters, we plan to offer more than a dozen new products to our customers. We are now ready, we will be up and running from September," Munjal said. He later added that the auto maker has plans to introduce 12 new models in the Indian auto market in the next two quarters.