Leading international motorcycle producer, Hero MotoCorp, has chosen to set up its first major manufacturing plant outside of India in southeast Colombia.
According to the Times of India, with a reported investment of $70 million, this factory promises to generate over 300 jobs in the region to help develop local infrastructure and convert Colombia into a hub for motorcycle sales. Further jobs are expected to be created in neighboring towns and cities such as Cali.
This move is expected to raise the Colombian market to the top position in the region, above those in Central and South America.
“Today, we laid the foundation stone of our manufacturing plant at Villa Rica in Colombia, the first full-fledged plant by an Indian two-wheeler manufacturer in Latin America,” said Pawan Munjal, managing director and chief executive, Hero MotoCorp.
“Once operational towards the middle of financial year 2015-16, the plant will have an annual capacity of 78,000 units that will be scaled up to 150,000 units in the next 3-4 years,” Munjal added.
The Colombian market has seen fast growth in terms of two-wheeled vehicle sales over the past few years, with annual sales at 626,000 units, over double that of cars, according to Colombia’s W Radio.
The Investment Promotion Agency in the Colombian Pacific, Invest Pacific, with the support of Proexport Colombia, has presented business proposals to important companies and brands in over 30 countries after the recent installation of Hero MotoCorp.
Hero MotoCorp, previously Hero Honda, is present in 18 markets at the global level. In 2006 the company was included as number 108 in the Forbes list of the top 200 most respected companies in the world.
From 2013-2014 the company sold a record 6.25 million two-wheelers, the highest ever by any two-wheeler manufacturer in a financial year. By 2020 it hopes to surpass the 100 million mark, according to the Times of India.
SOURCES
- Vendedor de motocicletas numero uno en el mundo elige a Colombia (W Radio)
- Hero MotoCorp enters Colombia (Times of India)