Hero MotoCorp’s split with long term joint venture partner and technology supplier Honda has seen the Indian two wheeler major tie up with a range of technology providers to maintain its stranglehold on the Indian two wheeler space, particularly in the realm of motorcycles.
In the near future, Hero MotoCorp will focus on building two wheelers and expanding its range of offerings. The two wheeler giant is also betting on hybrid scooters and on the development of large capacity sportsbikes. In the longer term, Hero MotoCorp is not averse to getting into passenger car and commercial vehicle segments.
Apart from hinting its interest to break into new segments such as cars and commercial vehicles in future, the two wheeler major has not announced any timelines for its foray into the four wheeler space. The focus in the near term will remain on two wheelers, which is the automaker’s bread and butter.
Entering the four wheeler segments of cars and commercial vehicles will not be easy as established players with decades of experience exist in almost every category of the market. Therefore, Hero MotoCorp – armed with a big cash chest – could be looking at the acquisition route to enter the four wheeler segments.
Hero MotoCorp is facing heightened competition in India, with Honda aggressively launching new products to corner more market share. Bajaj Auto, India’s third largest two wheeler maker, is growing stronger in the premium, sportsbike segments. Hero MotoCorp’s multiple tie ups with technology suppliers such as AVL and Ricardo are expected to yield new products.
Also, the Indian two wheeler giant is looking outward and establishing outposts in emerging markets across the globe. Betting big on exports, Hero MotoCorp has already touched base in African and South American markets. The United States will be next, with Hero MotoCorp using its Erik Buell Racing acquisition to enter the country.