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Hero MotoCorp to invest Rs 10,000 crore over next 5 to 7 years

IBEF:  February 19, 2020

Hero MotoCorp, the country’s largest two-wheeler manufacturer, plans to invest Rs 10,000 crore (US$ 1.43 billion) over the next five to seven years on research and development (R&D), new product development and expansion of facilities.

The company Announced its ‘Vision 2020 — the Future of Mobility’ and aims to be carbon neutral by 2030.

“Over the next five to seven years, we would be investing around Rs 10,000 crore (US$ 1.43 billion) in R&D of alternative mobility solutions, modern, state-of-the-art, sustainable manufacturing facilities, network expansion, and brand-building across the globe,” said Mr Pawan Munjal, Chairman and Managing Director, Hero MotoCorp.

The company expects to cross 100 million vehicles in cumulative sales in late year since the company started its journey, way back in 1985, he added. “Since April 2011 (after its separation from Honda), when we commenced our solo journey, we have invested a total of over US$ 600 million in our R&D. Similarly, we have invested over US$ 1 billion in setting up new manufacturing facilities and plants,” he said.

Mr Munjal said the company’s target is to become carbon neutral by 2030, waste neutral by 2025 and 500 per cent water positive the same year under its sustainability targets.

He added, “Changing times call for a change in structure. So, to address the new, emerging trends, we have created a separate vertical — the Emerging Mobility Business Unit — that is working on a range of mobility solutions for the future”.

“We will redefine mobility through the creation of a robust roadmap that sets best practices and benchmarks for the industry. We have been driving innovation and technology advancements in the field of mobility for decades. Yet, it is imperative that we continue to shift gears and constantly keep innovating and inventing in every sphere of mobility.”

Hero MotoCorp launched BS-VI-compliant versions of its Glamour motorcycle model, priced at Rs 68,900 (US$ 985.83) and Rs 72,000 (US$ 1030.19), and Passion Pro, priced at Rs 64,990 (US$ 929.88) and Rs 67,190 (US$ 961.36). The company also unveiled its premium bike Xtreme 160R, which will be available in the markets in March.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.