Hero MotoCorp (formerly Hero Honda) has announced that they are in process of finalizing the process of setting up their fourth Motorcycle assembly plant in India. The statement has come after the announcement of sales numbers which have been record high for Hero MotoCorp for past quarter. Owing to huge demand of the Hero Honda Motorcycles in India, Hero MotoCorp is facing issued with the capacity of the existing three plants.
image- Hero Honda Glamour
To keep up with the growing demand of motorcycles, the new plant will provide additional production capacity to Hero MotoCorp. Anil Dua, Hero Honda, Senior VP, Marketing and Sales quoted:
For 2012-13, we will certainly need a fourth plant. In the next few weeks or months, we will be talking about the fourth plant. We will announce everything when the final decision is taken. We are in the final stages of the process.
This is a good sign for the company as there were speculations of negative impact on the sales of Hero Honda post its de-merger with the Honda Japan. The sales numbers of the past quarter suggest a strong growth for Hero MotoCorp. But interesting fact is that Hero MotoCorp is still using Hero Honda brand name as it is allowed to use it for couple of years more as per the agreement. Once the branding changes, there will be some fluctuations as Hero Honda is a very reliable and reputed brand which may take a toll on the Hero MotoCorp after it decides to change the badging on the Motorcycles.
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