India-based world’s largest two wheeler maker Hero MotoCorp has kick-started operations at its first outside-India manufacturing facility in Colombia.
Hero MotoCorp has invested $ 70 million to commence its Colombian manufacturing operations. Of the total investment, the company has used $ 38 million as CAPEX and the remaining investment will be utilised as working capital for the next few years.
The company already has four manufacturing facilities in India and the new plant in Colombia is the fifth one. The two-wheeler maker has set up the new plant in nine months, covering an area of 17 acres at the Parque Sur free trade zone in Villa Rica, which is around 500 km south-west of Bogota.
Initially, the Colombian facility will have an annual manufacturing capacity of 80,000 units, which will be expanded to 150,000 units in the second phase.
The two-wheelers manufactured in Colombia plant will be sold in the Andean countries. It can also be a strategic location for exporting Hero MotoCorp’s vehicles to North American markets such as Mexico and the United States.
Juan Manuel Santos, President of Colombia and other top ministers have participated in the inauguration of the new plant in the presence of Pawan Munjal, Chairman, MD and CEO of Hero MotoCorp.
To start with, Hero MotoCorp will manufacture its top selling 10 two-wheeler models in the plant including the scooter Dash, which witnessed global launch during the inauguration of the plant. .
According to Hero MotoCorp, it is the first Indian two-wheeler maker to establish a production plant in Latin America.