Hero MotoCorp, the world’s leading two-wheeler manufacturer and a dominant player in the Indian market, is set to expand its global presence by starting operations in Brazil by the fourth quarter of FY2025 (January-March 2025).
Following its recent entry into the Southeast Asian market with the launch of operations in the Philippines on August 1, 2024, Hero MotoCorp is now focusing on Latin America. In a recent investor presentation, the company confirmed its plans for Brazil but did not provide specific details about production capacity.
Earlier in May, Hero MotoCorp announced its intention to establish a wholly-owned subsidiary in Brazil, which is expected to be named ‘Hero MotoCorp do Brasil Ltd’. The new entity will oversee the manufacturing and distribution of two-wheelers, including parts and accessories, with investments likely to occur in phases.
The company has been witnessing a significant rise in demand for its exports. Between April and July, Hero MotoCorp exported 73,731 units, marking a 33% year-on-year increase. This includes 62,199 motorcycles (up 35%) and 11,532 scooters (up 21%).
Currently, it operates four overseas assembly plants in Bangladesh, Colombia, Nepal, and the Philippines, with the upcoming Brazilian plant set to be its fifth. As two-wheeler exports to key African markets face challenges due to inflationary pressures, Indian manufacturers like Hero MotoCorp are exploring new opportunities in other global markets.
Latin America, particularly Brazil—the largest market in the region—presents a promising business opportunity. Notably, Bajaj Auto began operations at its new plant in Manaus, Brazil, in June 2024, and Royal Enfield operates five CKD assembly plants globally, including in Brazil. Hero MotoCorp’s strategic move into Brazil is part of its broader plan to diversify its international operations and tap into the growing demand for two-wheelers in Latin America.
