Hero Motor Corp, India’s largest motorcycle manufacturer with about half of its own huge domestic market, has launched a commercial assault on neighbouring Bangladesh through a production joint venture.
The company has signed an agreement with Bangladeshi automotive assembly and distribution group Nitol Niloy to form a new enterprise. Hero will have a 55 per cent stake and has undertaken to invest £24m in the construction of a local factory capable of churning out 150,000 bikes annually. This will be Hero’s first manufacturing plant outside of India.
According to Hero chief executive Pawan Munjal, pictured, his brand is targeting an initial 20 per cent of the powered two-wheeler market in Bangladesh, currently worth about 500,000 units a year but predicted to treble in the near future. The new operation is scheduled to be up and running in the autumn of 2015.