'Hero will roll out own bike by 2015'

It’s been over a year since the Hero Group announced its decision to part ways with Honda Motor Co in their joint venture, Hero Honda Motors. During 2011, the since-rechristened Hero MotoCorp managed to sell over six million bikes and scooters. But with the market slowing down and Honda’s technology available only till 2014, the group has its task cut out in taking the company forward in the domestic market as well as establishing an international footprint. Excerpts from a chat with Hero MotoCorp’s managing director Pawan Kant Munjal and joint managing director Sunil Kant Munjal on a day the company unveiled three new models  — 100 cc bike Passion XPro, 125 cc bike Ignitor and a 110 cc scooter named Maestro:

On the journey since parting ways with Honda…
Pawan Munjal: It was a very bold decision to buy out Honda (in the JV). Sceptics were left wondering why we did not sell out instead and get a huge pile of cash. But we were ready to take this plunge solo and we have had a successful 2011, with sales of more than six million units, the largest by any single vehicle manufacturer anywhere in the world. 2011 was a watershed year for us.

On growth strategy for 2012…
Sunil Munjal: We are looking forward to 10-12% growth. We will match the two-wheeler industry average. The market looks quite uncertain due to the current macroeconomic environment. An environment more conducive to growth is expected in the second half of 2012.

On challenges for Hero after breakup with Honda…
Sunil Munjal: When we parted ways, for us there were three main challenges — expanding market for our products beyond India, designing products on our own and developing a strong identity for the new brand (Hero) against a well-known brand earlier.

On where the company stands a year down the line…
Pawan Munjal: Within just eight months of our going solo, we acquired a new brand identity even when we had the option of carrying on with our erstwhile brand, which was an already well-established brand name, till 2014.

Sunil Munjal: We have already begun doing a lot of external and internal work on developing and acquiring technology. We at Hero already have capabilities to develop variants and modifications. Now, we are concentrating on developing products from scratch in India. This should happen by 2015. We are also doing a fair amount of work on taking our products international, but I cannot reveal further details on these initiatives just now.

On new manufacturing facilities…
Pawan Munjal: We will make an announcement at the appropriate time. (Late last year, the company had announced its intention to set up two greenfield manufacturing plants. Its capacity by end 2012 will be 6.5 million units when sales have already crossed 6 million in calendar 2011).