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Hero MotoCorp to use Turkey for entering European market

The Economic Times:  March, 2014

Mumbai: Hero MotoCorp, the country's largest two-wheeler maker will use Turkey as the beachhead for entering the lucrative European two-wheeler market. ET learns, the distribution tie up with " Asya Makina" of Soysal Group to market two wheelers in Turkey is just the first step.

Hero intends to use Turkey as a gateway to reach out to advanced market of Europe with its 150 cc scooter Zir and the hybrid scooter 'Leap' in the next couple of years and later explore introducing the 600 cc bike Hastur in the developed markets. Based on the volumes going ahead, the company may explore possibility of an assembly line to serve the European markets.

The ambitious plan to sell in the developed European markets will begin in the middle of 2014, when it begins sales in North America through its partner Erik Buell Racing. The company intends to sell its 600 cc bike Hastur to this market.

"Our global business is gaining critical mass. We are soon going to have as many as four assembly plants outside of India. The assembly unit in Kenya and Tanzania are already operational, with Uganda set to commence operations next week, to be followed by Bangladesh soon," Hero MD & CEO Pawan Munjal told ET on phone from Istanbul shortly after launching brand Hero in the Turkish capital.

As part of accelerating its global expansion Hero MotoCorp has forayed into four new markets with as many assembly units ready for operation. Hero showcased a range of its products at its pavilion at the Eurasia MOTO Expo, which started in Istanbul on Thursday. For the Turkish Market, Hero MotoCorp launched the 100cc scooter Pleasure, 125cc bike Glamour and the 150cc bike Thriller.

Hero says its immediate short-term goal is to of achieve 5% of 2,00,000 units two-wheeler market in Turkey . It kicked off its operations with 50 retail outlets spread across the country.

Hero already sells its two-wheelers in Peru in Latin America; Guatemala, Honduras and El Salvador in Central America; Kenya in East Africa; Burkina Faso and Ivory Coast in West Africa; Sri Lanka and Nepal. The company aims to sell over 1.2 million units per annum by 2020.