Hero MotoCorp, the world’s largest two-wheeler manufacturer, announced new expansion plans for the Central American markets of Nicaragua and Honduras after appointing new distributors there.
It said it has ‘aggressive expansion plans’ for the two countries, and plans to launch its range of premium motorcycles in both countries and expand its network in these markets.
Hero said it will create new retailing points in the two countries and also set up flagship stores in key cities. The company already had some presence in these markets.
Rival Bajaj Auto is already a strong player in the Latin American market, and gets around half its sales via exports. Hero MotoCorp has traditionally got a higher share of its sales from the domestic market.
Hero said it has now appointed Grupo Casa Pellas – one of biggest economic groups in Nicaragua and a seller of motorcycles, cars and trucks with 107 years of experience – as the exclusive distributor of Hero MotoCorp scooters and motorcycles in the country.
Movesa S.A., with 14 years of experience in selling motorcycles, has been appointed as the exclusive distributor in Honduras.
Sanjay Bhan, who heads global business for Hero MotoCorp, said the two countries are key markets and Grupo Casa Pellas and Movesa S.A. will drive the company’s growth in the two countries.
The move comes at a time when Hero MotoCorp is striving to make its presence felt in the premium motorcycle category, after remaining largely focused on the commuter category for decades.
In Honduras, the company will launch XPulse 200 and the new Hunk 160R (Xtreme 160R in India). Besides, it already has models such as Eco 150, Hunk 150 and Hunk 190R in the market.
The company has an even bigger line-up in Nicaragua, comprising models such as Splendor iSmart 110, Ignitor 125, Eco 150, Eco 150TR, Hunk 150, Hunk 160R, Hunk 190R, XPulse 200 motorcycles and Dash 125 scooter.
“Through our new products and extensive customer touch-points, we aim to reach out to the youth in these countries who are looking for premium and stylish two-wheelers,” Bhan said.
It said its XPulse 200 and Hunk 160R have received a “great customer response” in several South American countries.
“The Company will also offer a 4-year warranty on all products and will also ensure parts/service availability for all products,” it said.
Hero MotoCorp has two R&D centers – Center of Innovation and Technology (CIT) in Jaipur, India and the Hero Tech Center near Munich, Germany.