Hero MotoCorp has announced its plans to establish its first overseas manufacturing factory in Brazil. The company intends to create a new wholly owned subsidiary, likely to be named ‘Hero MotoCorp do Brasil Ltd,' which will focus on manufacturing and distributing two-wheelers, along with parts and accessories.

This move marks a significant expansion for Hero MotoCorp, which currently has a presence in over 47 countries. The decision to invest in Brazil reflects the company's strategy to strengthen its global footprint and tap into new markets. The establishment of the Brazilian subsidiary follows a similar move by Pune-based Bajaj Auto, which made its overseas manufacturing debut in Brazil in 2023 through its wholly-owned arm, Bajaj Do Brasil.

Hero MotoCorp's CEO, Niranjan Gupta, expressed optimism about the industry's growth, citing stable commodity prices, expectations of normal monsoons, and increased government spending as favourable factors. Gupta highlighted the company's plans to drive market share gains through new launches in the premium and 125cc segments in the upcoming fiscal year.

Additionally, Hero MotoCorp plans to enhance its scooter portfolio by launching the Xoom 125cc and Xoom 160cc models in the first half of the fiscal year. The company is also gearing up to make significant strides in the electric vehicle (EV) market, with new product launches planned in the mid- and affordable segments.

Hero's new Xoom 125R and Xoom 160 models are set to enter the premium scooter segment, offering unique features to distinguish themselves. The Xoom 160, in particular, boasts a maxi scooter design with a rugged edge. Its tall stance, complemented by large 14-inch wheels and block-pattern tires, gives it the appearance of an adventure scooter. Featuring a 156cc air-cooled, single-cylinder engine with automatic transmission, the Xoom 160 is poised to compete with the likes of the Aprilia SXR 160 and Yamaha Aerox 155 in the premium scooter market.

The company believes that Hero MotoCorp's entry into the Brazilian market represents a significant step in its global expansion strategy, as it seeks to capitalise on emerging opportunities and strengthen its position as a leading player in the two-wheeler industry.

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