Hero MotoCorp to start full-fledged manufacturing abroad

Hero MotoCorp, country's largest two-wheeler maker, is looking at starting full-fledged manufacturing abroad as it plans to set up factories in North and Latin America. While, the company has set up completely-knocked down (CKD) assembly units in some markets, it is now planning to have full-fledged manufacturing operations in atleast three cities, viz Brazil and Colombia in Latin America and Mexico in North America. Further, the unit in Colombia is expected to come up by the middle of 2014, while the other two are expected to be completed a little later.

The company, controlled by the Munjal family, was earlier restricted from making overseas investments as part of the joint venture agreement with erstwhile partner Honda. However, post the separation with Honda in 2011, the company has been taking gradual steps towards generating a substantial portion of revenue from exports, which is now prompting it to look at setting up factories abroad.

Hero MotoCorp is the world's single largest two-wheeler motorcycle company. Honda Motor Company of Japan and the Hero Group entered a joint venture to setup Hero Honda Motors in 1984. Hero Honda Motors changed its name to Hero MotoCorp following the exit of its erstwhile Japanese promoter, Honda, from the company.