Hero Honda plans big push in overseas markets

01 Jun 2011 Evaluate

The company is planning to set up factories and assembly operations overseas, apart from developing new models specifically for the foreign markets. The company sees a tremendous sales opportunity outside India and is aggressively looking at markets like Latin America, Africa and South-East Asia. 

Unlike rival Bajaj Auto that gets 30% of its sales from exports, Hero Honda got only around 2% of its 5.4 million sales from overseas markets last fiscal. The company has huge expansion plans to increase this share many-fold as the market abroad is close to 50 million units against the domestic two-wheeler market of around 10 million units

It is learnt that as part of a new branding strategy the company will be renamed as Hero MotoCorp Ltd against the present Hero Honda Motors Ltd (HHML). The company can use the Honda name till June 2014, but it wants to shift to a new brand identity much earlier. The company is in the process of evaluating the various markets, after which it will decide whether it wants direct exports from India or a manufacturing or assembly set-up. While some of the existing brands would be used, the company will also look at an all-new range.

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