 "Hero MotoCorp bets big on Telangana, AP market")
“Both Telangana and Andhra Pradesh are very big and important markets for us. We are currently commanding over 50 per cent market share in two-wheeler sales in the region,” Hero MotoCorp south zone head Mahesh Hiremath told mediapersons here recently.
According to him, the market in both states was witnessing 90,000-95,000 two-wheeler sales each month with a growth slightly ahead of the national average. He expects the two-wheeler industry volume growth in the country to be around 9 per cent this fiscal, while the company’s performance would be “slightly better”.
Hero MotoCorp had planned to expand its network in the region by adding new touch points. “We have 600 touch points in the region now, and planned to increase them 9-10 per cent this fiscal,” he said. The company today launched two new products, Passion Pro and Xtreme Sports, here. It claims the Passion segment was adding one million new customers each year.
On the status quo orders issued by Hyderabad high court over the construction of its plant in Andhra Pradesh, a company official said, “The issue will not deter us. What happens beyond this, only time will tell us”.
The high court had issued interim directives on a petition filed by Tamil Nadu-based Ishwariya Orchards, which has claimed ownership and possession of the land parcel allotted to Hero MotoCorp by the Andhra Pradesh government.
The plant proposed in Andhra Pradesh’s Chittoor district would see an investment of around Rs 1,800 crore and have a production capacity of around 1.8 million per annum.
The company currently has four manufacturing facilities in the country with an operational capacity of over 9 million units per annum. It is also in the process of setting up two units abroad.