Hero Honda explores export opportunities in Africa: report

India's largest two-wheeler maker Hero Honda is understood to be planning to export its flagship bike Splendor to Africa.

According to media reports, the joint venture company between India's Hero Group and Japan's Honda Motor Co, has sent two marketing executives to Tanzania to conduct a feasibility study.

"India's Hero Honda company is considering exporting motorcycles to Tanzania which are more suitable for rural farmers," the online edition of Tanzania's 'Daily News' said.

The report quoted Hero Honda Chairman B M Munjal, who addressed a team of African journalists in the company's one of the plants in India recently.

Quoting Munjal, the report said Hero Honda "dispatched two marketing executives to Tanzania to study the market and look into the possibility of exporting our number one brand, Splendor there".

Repeated attempts to get a comments from Hero Honda officials did not fructify.

Daily News said that Munjal had, however, ruled out possibility of establishing a plant in East Africa at this moment until a comprehensive study is done in the market.

"We have been in this business for the past 25 years, but there are some parts that we still import, little as they are, they are very costly and so it is a long way before setting up a plant but the thought is there," he has been quoted.

Hero Honda's move to explore export opportunities in Africa assumes significance, as it comes in the midst reported plans of Honda to exit the JV.

The Indian auto market has been abuzz with speculations that the two partners, who hold 26 per cent stake each in the company, are looking to part ways, with the Hero Group reportedly seeking help from private equity players to buy out Honda's stake.

Exports by Hero Honda is one of the contentious issues between the Hero Group and Honda Motor Corp. The Japanese firm is reportedly against exports by Hero Honda as its own two-wheeler arm is present in many countries.

Hero Honda, however, exports to some of India's neighbouring countries. So far this fiscal, it has exported 64,920 units of two-wheelers, as against its domestic sales of 24,55,063 units.