Hero MotoCorp, the world’s largest two-wheeler maker by volumes, today announced the start of retail sales in Mexio, a key Latin American market.
The company, which has a market share of almost 50% in India, said it has launched most of its popular motorcycles such as the Xpulse 200, Xpulse 200T, Hunk 190, Hunk 160R, Hunk 150, Eco, 150 TR, Eco 150 Cargo and Ignitor 125 in the market.
In the scooter category, the company has introduced the Dash 125 scooter.
Hero is somewhat late in exploring key overseas markets such as Mexico, partly because it started out as a local joint-venture partner of Honda, which was a strong player in many markets around the world.
Its chief rivals, Bajaj Auto and TVS Motor Co, both have a strong presence in Mexio, as well as most of the Latin American countries.
Motorcycle manufacturing is one of the rare areas where Indian companies have managed to not only hold their own against competition from Chinese manufacturers, but also win against such competition in many global markets.
Hero, despite being late, has chalked up aggressive expansion plans for overseas markets.
The company sells only around 8% of its two-wheelers outside India, while rivals like Bajaj Auto and TVS Motor Co get 30-40% of their sales from abroad.
Hero MotoCorp had, in January this year, announced that it had decided to go with Grupo Salinas as its local distribution and sales partner.
“Mexico will be a key market for us in the future and this is the first step in this direction. The range of products that we have introduced here should excite and cater to a wide segment of customers,” said Sanjay Bhan, Hero MotoCorp’s head for its global business.
“The product portfolio will be available across the country through the retail arm of the distributor, agencies and dealers, and will have attractive financing options. There will also be a wide network of service centers spread throughout the country. The products will be available with a warranty of three years or 30,000 kilometers,” it added.
Part of the reason for the relatively lower contribution of exports to Hero MotoCorp’s sales may be its tremendous success in India.
The company has seen strong demand for its products in recent months, and even registered its highest-ever monthly dispatch to global markets in March 2021.
