Hero MotoCorp Sets Foot In Southeast Asia With Philippines Debut

Hero MotoCorp has officially marked its entry into the Southeast Asian market with the launch of its operations in the Philippines. The company has partnered with Terrafirma Motors Corporation (TMC), a part of the Columbian Group, to assemble and distribute its range of motorcycles and scooters in the country.

This strategic move aligns with Hero MotoCorp's ambition to strengthen its global footprint and tap into the growing Philippine motorcycle market. With a state-of-the-art assembly facility in Laguna, capable of producing over 150,000 units annually, the company is poised to cater to the growing demand for reliable and affordable two-wheelers. However, their approach is to initially offer aspirational products and then shift focus to high-volume products.

Initially, Hero MotoCorp has decided to offer models such as the Xpulse 200 4V, Hunk 160R 4V (Xtreme 160R in India), and Xoom 110 scooter. This appears to be a top-down approach, prioritising products with larger profit margins while building a mass market approach. The company plans to expand its product portfolio to align with market preferences. As part of the JV, Hero MotoCorp products will be sold in over 350 touchpoints across the Philippines. Hero currently is present in 48 countries and is focusing on expanding its overseas operations as exports have contributed heavily to sales of its rivals such as Bajaj Auto and TVS. 

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Niranjan Gupta, Chief Executive Officer, Hero MotoCorp said, “The commencement of operations in the Philippines will bolster our overall global presence. Hero MotoCorp, with its extensive and innovative product portfolio, is committed to delivering superior mobility solutions and exceptional after-sales services ensuring a delightful ownership experience. Partnering with Terrafirma Motors Corporation (TMC), a distinguished entity within the Columbian Group, we are poised to swiftly establish and expand our presence in this vital market."