Hero MotoCorp to invest Rs 10,000 Cr in alternative mobility solutions
Moreover, Hero MotoCorp has confirmed its re-entry in the lucrative 150-160cc motorcycle segment with the showcase of the Xtreme 160R.
India’s largest selling two-wheeler maker, Hero MotoCorp, said on Tuesday that it will invest around Rs 10,000 crore in R&D for alternative mobility solutions. The amount will also be used for sustainable manufacturing facilities, network expansion, and brand building.
The company understands that the global automotive industry is passing through a very dynamic environment. With the rapid democratisation of technology, the emergence of tech-based aggregators, ride-hailing startups, and regulatory changes have disrupted the global mobility business.
Speaking about the company’s plans, Pawan Munjal, Chairman and Managing Director of Hero MotoCorp said,
“To address the new, emerging trends, we have created a separate vertical – the Emerging Mobility Business Unit (EMBU), that is working on a range of mobility solutions for the future. Hero has been working on a series of future mobility platforms in innovative formats.”
Ever since its split with its erstwhile partner Honda in 2011, Hero has focussed heavily on research and development. Between 2011 and 2020, the company has spent more than $600 million (around Rs 4,300 crore) on R&D.
“We must collaborate with our external ecosystem, co-creating solutions that benefit the community and accelerates sustainability,” added Pawan.
Hero MotoCorp has developed an extensive ecosystem of development partners in Thailand, Spain, Italy, and Germany.
At present, the company is aiming to be carbon neutral by 2030 by reducing carbon footprint through energy efficiency improvement, use of renewable power, plantation, and increased solar footprint. Besides that, it is also aiming to be waste neutral at its facilities by focussing on recycling.
Hero, with its erstwhile partner Honda, was the first to enter the 150-160cc motorcycle segment with the CBZ in 1999. The company is now re-entering the market with the Xtreme 160R.
Currently, Hero MotoCorp is the largest manufacturer of motorcycles and scooters in terms of unit volumes produced by a single company in a calendar year for 19 consecutive years.
At present, it has eight manufacturing plants (six in India), including two facilities each in Colombia and Bangladesh.
(Edited by Suman Singh)