World’s largest two-wheeler manufacturer, Hero MotoCorp, has inaugurated its maiden overseas plant, in Colombia, with initial production capacity of 80,000 units per annum, which will increase to 1.5 lakh units in the next phase. The stock has reacted positively to the development, up nearly 2% or by Rs. 45, at Rs. 2,358 on NSE.

Positioned to be an export hub for the Andean and Central American countries, this plant has increased the company’s tally to 5, including 4 plants in India. Established with a project level investment of US $ 70 million (approximately Rs. 460 crore), the plant will manufacture the top 10 models of the company, including its newly launched scooter Hero Dash.  

For August, Hero Moto clocked sales of 4.81 lakh two-wheelers, down 14.0% YoY and 1.4% QoQ due to delayed festive season in the current year. However, for the festive season, it has lined up launch of 2 new scooters and few bikes, Hero Dash being launched with the inauguration of the Columbia facility. While the company and industry are hoping for a healthier second half of the fiscal, in terms of sales, only time will tell if their optimism passes the test of time.