Hero MotoCorp commences work in Philippines, expanding presence in Southeast-Asian region

Hero MotoCorp, recognised globally as the largest manufacturer of motorcycles and scooters, has initiated its operations in the Philippines. This strategic move represents a crucial step in the company's ongoing efforts to expand and solidify its international presence.

For this venture, Hero MotoCorp has partnered with Terrafirma Motors Corporation (TMC), a subsidiary of the Columbian Group of Companies. The Columbian Group is renowned as one of the most experienced and prominent automotive groups in the Philippines. TMC will function as the exclusive entity responsible for both assembling and distributing Hero MotoCorp's products and services in the Philippine market. This partnership, which was formally announced in October 2022, marks the beginning of a significant collaboration between the two companies.

Niranjan Gupta, who holds the position of Chief Executive Officer at Hero MotoCorp, expressed his thoughts on this development. He stated, "The initiation of our operations in the Philippines will significantly enhance our overall global footprint. At Hero MotoCorp, we are dedicated to delivering an extensive and innovative product portfolio, coupled with superior mobility solutions and exceptional after-sales services. Our aim is to ensure a delightful ownership experience for our customers. By joining forces with Terrafirma Motors Corporation (TMC), a distinguished member of the Columbian Group, we are well-positioned to rapidly establish and expand our presence in this crucial market."

Bienvenido Sanvictores Santos, who serves as the Chairman of Terrafirma Motors Corporation, also shared his perspective on the partnership. He said, "We are thrilled to collaborate with Hero MotoCorp, a company that stands as one of the leading automotive entities worldwide. Hero's products have earned a reputation for their advanced technology and reliability. We are confident that consumers in the Philippines will develop a strong affinity for these motorcycles and scooters. By combining Hero MotoCorp's global expertise with our deep understanding of the local market, we aim to make a substantial impact in the Philippine automotive sector."

As part of this expansion, a cutting-edge assembly unit and parts warehouse have been established at Terrafirma Motors Corporation's facility in Laguna, Philippines. This state-of-the-art facility covers an impressive area of over 6,000 square meters and boasts an annual production capacity exceeding 150,000 units.

The newly inaugurated assembly facility is set to produce some of Hero MotoCorp's best-selling and internationally acclaimed motorcycles. The production lineup includes the Xpulse 200 4V, the Hunk 160R 4V, and the Xoom 110 scooter. These models have garnered significant popularity in various global markets.

Coinciding with the commencement of its assembly operations, Hero MotoCorp has also launched its retail operations in the Philippines. The company is offering its products at competitive prices to attract local consumers. The Xpulse 200 4V is being offered at an on-road price of PHP 140,000, while the Hunk 160R 4V is priced at PHP 99,900. The Xoom 110 scooter is available at PHP 69,900. To further enhance the value proposition for customers, each product comes with a comprehensive warranty of 2 years or 24,000 kilometres, whichever comes first.

In terms of customer service and support, Hero MotoCorp and TMC have collaboratively established an extensive retail network. This network encompasses sales, service, and spare parts facilities, with over 350 customer touch-points already in place. The partners have ambitious plans to rapidly expand this network by the end of the year, aiming to increase their reach and accessibility to Philippine consumers.

This expansion into the Philippines adds to Hero MotoCorp's already impressive global presence. The company currently operates in 48 countries worldwide. It maintains advanced technology centres in India and Germany, showcasing its commitment to research and development. Additionally, Hero MotoCorp has established manufacturing facilities in India, Colombia, and Bangladesh, demonstrating its global production capabilities.

This strategic entry into the Philippine market underscores Hero MotoCorp's commitment to global expansion and its ability to forge strong local partnerships to penetrate new markets effectively.