Hero launches operations in Argentina, unveils global product
The Dollar Business Bureau
Indian two-wheeler maker Hero MotoCorp has launched its operations in Argentina, which became the company’s 35th global market, by opening the brand's first dealership in Buenos Aires and also unveiling the first global product outside India.
The Indian two-wheeler manufacturer launched the new generation of its popular 125 cc motorcycle Glamour, which will be badged Ignitor for the Latin American markets such as Colombia, Peru and Argentina.
The company expects a considerable amount of sales from South America with the market becoming the focus area for the largest Indian two-wheeler manufacturer. It should be noted that only 10% of the overall sales of the manufacturer will come from outside India in the short-run.
There are a total of four products that have been launched in Argentina including the Ignitor (Glamour), Hunk, Hunk Sports and the sole scooter offering – Dash, which is sold in India as the Maestro Edge. It has appointed Argentinian partner Marwen SA as its distributor for this market.
Marwen will also be assembling the motorcycles for Hero in its assembling facility, thus helping the company in rolling out its products in Argentina. The plant has an annual production capacity of 5000 bikes and is located at Villa Rosa in the Buenos Aires province.
For assembling, the company will be shipping the kits from its manufacturing base in India and not from its plant based in Colombia as it is cost-effective. The scenario might change in the future once the Colombian operation achieves more scale with Hero increasing its local content.
Hero MotoCorp plans to achieve a target of selling in 50 markets by 2020.