Hero MotoCorp plans to foray into US market next year

Hero MotoCorp plans to foray into US market next year

  India’s largest two-wheeler maker, Hero MotoCorp, has forayed into 18 global markets in last year and a half. Now, the company targets to sell its motorcycles in the US next year with a hope to create a niche market for its products.

“For the developed western markets (US) currently, we are not that much focused on bigger motorcycles. Right now, what we are looking at is taking some of our current products and try creating a niche market,” said Hero MotoCorp Managing Director and Chief Executive Officer Pawan Munjal.

  When asked about the US launch, Munjal said: “It would be in the calendar year 2015 and marketing of the products would be done through Erik Buell Racing (EBR).”

“I do believe there would be possibilities in cities (in the US) for us to create niche market for our products,” Munjal added.

 Hero is hopeful that of its business in the US and would target smaller cities and the inter-city commuting segment with its products.

    

  Explaining the potential for acceptance in the US market, Munjal said, “”Last October, we had displayed some of our products at the motorcycle show in Florida and there was a huge amount of interest from distributors.”

In a strategy announced by Hero in August 2013, it plans to enter 50 markets by 2020 with a target of 20 manufacturing facilities across the globe and an overall annual turnover of Rs 60,000 crore. The company targeting to get 10 per cent of annual sales from export markets, at around 1 million units, by 2017.

Hero MotoCorp has set a cumulative sales target of 100 million units by 2020, having crossed the 50 million milestone last year.

Source: ET Auto