With the launch of its brand and products in Kenya, the country's largest two-wheeler maker, Hero MotoCorp announced its foray into the African continent on July 5. Sources close to the development process revealed that the auto maker has also established an assembly unit in the region as part of its worldwide expansion plans.
In a recent statement released, the company disclosed that it will commence its operations in Burkina Faso and Ivory coast coming week. On partnership with Ryce East Africa, Hero MotoCorp will be selling two-wheelers in Kenya. Under this mutual agreement, Sameer Group, a part of Ryce East Africa, has been declared as the official distributor of two-wheelers in the country. These products will be distributed through a network of multiple outlets spread across the region.
Commenting on the development, the Managing Director and Chief Executive Officer of Hero MotoCorp, Pawan Munjal was quoted as saying, “We are delighted to see brand Hero make its debut in the African continent with the first launch in Kenya. This is a strategic market for us in our overall plan for the continent, which is why we are also starting our first Africa CKD assembly operations here.”
However, it must be noted that the company did not revealed the exact capacity of its Kenyan assembly plant. Instead, the auto maker's statement said that it has launched the entire product portfolio, starting from the entry-level model Dawn, Splendor Pro, Glamour, Hunk to the premium segment Karizma.
“We are confident our products will attract customers across wide price spectrum and create a new benchmark for mass mobility in Kenya. Indeed, our Africa business is going to play a crucial role in our goal of taking Hero global,” added Munjal.
Sources close to the development process revealed that soon the auto maker will be starting its brand building work in this region with an English version of the Hero MotoCorp anthem “Hum Main Hai Hero (There's a Hero in Each of Us). Reportedly, this anthem will be aired across all the major radio stations of Kenya. The company further said. “There will also be brand-specific communications to establish Hero products in the country.”
Since Hero MotoCorp and Honda changed their ways in 2010 and ended up their 26-year-old partnership, the former has been looking for international expansion. In 2011, the Indian player had said that it was looking at a $10 billion turnover in the next five years, accounting for a total volume of 10 million units, from which 10 per cent of the entire sales would come from exports. For overseas shipments, the auto maker said that its key export markets would be Africa and Latin states of America.
The company's foray into Africa comes close to launching its brand in America's central states, where it started operations in El Salvador, Guatemala and Honduras in May. The other overseas markets of Hero MotoCorp include Sri Lanka, Ban, Nepal and Colombia.