Hero MotoCorp to bring back product development to India

Country's largest two-wheeler maker Hero MotoCorp has started the process of bringing back the product development of models it was doing with Eric Buell Racing (EBR), which had recently filed for bankruptcy.
Hero MotoCorp and the US-based EBR were in the process of developing a 250cc bike and a scooter.
"Clearly with the company (EBR) going into receivership surely there is slight push back in the timelines. But we are continuing to work on those products. In fact we are doing all the work over here in India," Hero MotoCorp Chairman and Managing Director Pawan Munjal told reporters here.
All the products which the company was developing with EBR would be done here in India, he added.

He was talking at the inaugural general meeting of Society of Indian Automobile Manufacturers (SIAM).
"The process is under finalisation as we speak. I believe it is just a matter of couple of weeks now that we bring in here and restart work on those products," Munjal added without elaborating on the exact timeframe.

Some of the models from the collaboration have already been launched.
Erik Buell Racing, in which the India two-wheeler giant had a substantial stake had filed for bankruptcy in April.
Hero had acquired 49.2 per cent stake in EBR in 2013 for USD 25 million (about Rs 148 crore).

When asked if the firm would look for new collaborations for the R&D of products, Munjal said: "I am very open to source technology from different sources in order to support our R&D ecosystem."
The company's upcoming innovation facility in Jaipur would commence operations from early next year, he added.
On new product launches, he said: "The segment which is growing faster, the scooters, we are about to launch two new models (two new platforms) in next few weeks, hitting the market well in time during the festive season."
The company already sells two scooter models.
On the festive season, Munjal said: "Starting this month we will start again stocking up for the festive season. Whatever the environment, we are very hopeful and bullish about the festive season. We are looking forward to it."

Commenting on the monsoon season and its impact on the sales, Munjal said: "Some areas had good rainfall while in South and West they did not have good monsoon. It will be a concern going forward."
Since Hero MotoCorp is well spread out through the country in terms of sales, the company hopes to balance out the impact, he added.
On slowing sales, he said that with already six months gone it is "unlikely to look for a double-digit growth".
On export strategy for the company, he said the company is looking to enter new markets.
"Over the next few months we are hoping to also get into some large markets, we are close to finalising distribution in Nigeria, Mexico and Argentina," he said.