Hero MotoCorp to Enter new Overseas Market in the First Half of 2012-13 : BikeAdvice |  |
- Hero MotoCorp to Enter new Overseas Market in the First Half of 2012-13
- Hero MotoCorp’s Royalties to Honda likely to Increase
- Suzuki GSR 750 Preview
| Hero MotoCorp to Enter new Overseas Market in the First Half of 2012-13 Posted: 22 Jan 2012 09:17 PM PST
Original Source: Hero MotoCorp to Enter new Overseas Market in the First Half of 2012-13 from BikeAdvice.in After posting sales of more than 1.5 million units per quarter in domestic market, Hero Motocorp is now all set to enter into new territories, to expand its global footprint. The company which reported 43% jump in profit for the third quarter of 2011-12, has announced that it will start to export two wheelers in new overseas market in the first of the financial year 2012-13. New markets include South East Asia, Africa and Latin America. It is currently in process of finalizing its partner and business model. The company had earlier planned to start export in the current quarter, however due to strong domestic demand and production constraint; it will now start exporting in the financial year 2012-13.
The company is also increasing its capacity to 7 million units per year for the financial year 2012-13. Currently it has 6.2 million units installed capacity which it will expand to 7 million units by March 2012. The output will be increased at all of its three plants, Haridwar, Gurgaon and Manesar. For example, it is expanding its Haridwar plant capacity to more than 9,000 units a day from current 8,000 units a day. The company has already expanded its scooter production capacity to 50,000 units a month from 35,000 units a month. The company sold record 61,17,599 units of two-wheelers in the period January-December 2011, a growth of 19.2% over the calendar year of 2010 when it had sold 51,34,549 two-wheelers. The company also expects to remain its royalty payment at current level for the fourth quarter. The company has paid royalty of Rs.228 crores for this quarter which is increased from Rs.210 crores it paid in the second quarter, due to yen's appreciation against rupee. The above figure suggests that the cumulative royalty for 2011-12 will be around Rs.846 crores (228+228+210+180) which is higher than expected amount of Rs.685 crores per year. The company signed the licensing pact worth ¥45,000 million (about Rs.2,400 crore) in April last year which is payable in 14 quarters. Commenting on royalty Anil Dua added "We expect the royalty payment for the March quarter (Q4) to be lower than last quarter, as we expect the rupee to appreciate from the current levels… Rs.53-54 (versus dollar) is not stable." He added that the company is in the process of building its research and development (R&D) capabilities, but it won’t happen overnight." The company as also hired about 255 engineers for building research and development facility and it expects to develop its own motorcycle by 2015. It seems that the company is on course for achieving sales of 10 million units a year by 2015 something which its earlier joint venture partner Honda aiming to do by 2020. - Mahavir Kothari Share on Facebook |
| Hero MotoCorp’s Royalties to Honda likely to Increase Posted: 22 Jan 2012 08:02 PM PST
Original Source: Hero MotoCorp's Royalties to Honda likely to Increase from BikeAdvice.in We had just posted a couple of days back, the way Munjals led Hero MotoCorp had performed in the last quarter. The company managed to produce fantastic sales figures and is been consistently growing leaps and bounds in the sub – continent. Off late, the depreciation of INR in the global market is more likely to lead to around 24 per cent increase in Hero MotoCorp’s royalty payments to its erstwhile partner Honda. This figure is pretty high than what HMC expected at the start of the year 2011 – 12. Mr Ravi Sud, the Chief Financial Officer (CFO) said at an investor call, 'However, the rupee value of yen denominated payments could drop from the next fiscal on expectations of an appreciation of the rupee.' "We expect the royalty payment for the March quarter (Q4) to be lower than last quarter, as we expect the rupee to appreciate from the current levels… Rs 53-54 (versus dollar) is not stable," he said. In the third quarter which got ended by December 31 last year, the world's largest two – wheeler manufacturer paid a whooping sum of INR 228 crore to the Japanese firm under a technology licensing pact that stretches till June of 2014. Hero MotoCorp also expects the fourth quarter payment to also remain at the same level or lower than the third quarter. In the first and second quarters of the current fiscal, the company had paid a sum of INR 180 crore and INR 210 crore respectively. It is also to be mentioned that the cumulative royalty for the year 2011 – 12 is pretty higher than what it had expected when it actually signed the licensing pact worth ¥45,000 million (about Rs 2,400 crore)with Honda in the month of April last year.The amount was payable over a period of 14 quarters. "The royalties will be paid in annual instalments to Honda … Our estimate is that it will increase to Rs 670-680 crore a year till 2014," Mr Sud had said in April last year. However, the cumulative royalty for 2011-12 is now likely to be around Rs 846 crore (if Q4 royalty is also at Rs 228 crore). Despite higher royalty amoubts paid to Honda, Hero MotoCorp’s profits in the December quarter rose by 43 per cent to a record of INR 613 crore. The company also managed to sell the highest – ever number of two wheelers at a figure of 15.89 lakh units. Besides being a successful company in India, HMC also has serious plans of foraying foreign markets in order to increase its profit. The company plans to enter new overseas markets somewhere by the first half of 2012 – 13, as it finalises its partner and business model with which it would operate in its new markets. It had earlier planned to expand exports in the current quarter. "We are completing our strategy, business model and partners to enter into the new markets. We should be able to start our operations in the next couple of quarters," Mr Anil Dua. At the same time as HMC concentrates on tapping the potential in untapped markets, it is also trying to increase its output capacity in the domestic market. The output across its three plants at Haridwar, Gurgaon and Manesar is being increased to seven million units by March, from a present capacity of 6.2 million units. As part of its expansion plans, the company has also increased its workforce by hiring another 255 engineers at its R&D centre, and hopes to develop its own bike by the year 2015. So guys, wait till 2015 to see a whole new bike concept from HMC which will be developed by itself and now by depending on its ex – counterpart. So, here goes the scoop. Will HMC showcase the new concept bike in the Delhi Auto Expo 2014? Answers please! Regards, |
| Posted: 22 Jan 2012 07:59 PM PST
Original Source: Suzuki GSR 750 Preview from BikeAdvice.in We already have gone through a showcase of one more street warrior during coverage of Autoexpo 2012. It's a 750 cc macho machine from Japanese manufacturer SUZUKI. GSR 750 was launched by the SUZUKI during mid of 2011 for the global market. Suzuki is mostly known for marvellous technologies used in GSX-R and Hayabusa. Few of technologies from GSX are now incorporated in new GSR 750 for better street performance. Let us have a brief journey through some changes those have included on new GSR. EngineRefined 750 cc engine used in GSR uses twin throttle valve for better charging efficiency and produces more power like GSX-R. Suzuki has now used exhaust tuning system in GSR which works with servo operated butter fly valve. This system helps to maintain scavenging efficiency of the engine in almost all operating conditions. Better scavenging as well as breathing efficiency improves sudden braking and acceleration, proving this bike perfect for city roads. Suspensions
FrameFrame has become much light weight with the help of advance integrative design instead of using single AestheticsMajority changes have been performed in aesthetics of GSR to provide new-edge glance. This change starts from the front fender which is a carefully moulded with striking vent shapes. Tank shape in now much more muscular with distinctive textured side panels. Company's emblem is now located at radiator side panels assisted with aggressive front bodywork. Head light is now much more refined and comes with dazzling and idiosyncratic shape. Head light shell is also provided with vented side panels just like front fender. It also uses integrated dual position lights with decorative blue lenses for astounding looks in gloomy surrounding. Four exhaust pipes are now kept open to provide elegant look. Exhaust opening is now drawn by side of rear wheel which was located under the pillion seat. Triangle shaped exhaust muffler has been directly imitated from Hayabusa, looks stunning from the rear. Single straight seat is now replaced by outlined split seats in new GSR. Seats are also flanked with stylish frame side covers. Rear side panels are also made tricky and rear tail has become sharper towards the end. There are three colour options available in this street fighter: Glass sparkle black – GSR750 – YVB, Glass sparkle black/ Pearl mira red – GSR750 – JSP, Pearl glacier white – GSR750 –YWW. As mentioned by Saad in his article, Suzuki has not declared anything about launching this street bike in India. You can enjoy its photos and video here. Regards, Dhruv Panchal Share on Facebook |
Mr Anil Dua, senior vice president of marketing and sales at Hero MotoCorp said, "the company has seen about 20% sales growth in exports and is drawing up a road map to expand its base in existing markets like Latin America and South Asia. South East Asia and Africa are also among the markets that Hero MotoCorp plans to tap to grow exports. We are completing our strategy, business model and partners to enter into the new markets. We should be able to start our operations in the next couple of quarters."
casted frame. Integrated design uses different materials with different properties at different sections to optimize the frame as and where required. The frame of GSR is basically a combination of compact tubular girders and twin spar type frame.
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