Hero MotoCorp to set up subsidiary in US

Hero MotoCorp, India’s largest two-wheeler maker, is planning to open a wholly-owned subsidiary in the US to explore the market of two-wheeler in that country. “The board of directors of the company at its meeting held on May 7, 2015, inter alia, has considered and approved setting up of an operating wholly owned subsidiary in United States of America for conducting the business of, among others, providing research, development and consulting services, distribution, marketing and promotion of two wheeler vehicles, and any other ancillary activities,” said Hero MotoCorp in a press release.
 
The Board has also approved the initial investment of up to Rs 35 crores for setting up the US subsidiary.
 
Hero MotoCorp’s overseas foray started after 2010 when its promoters the Munjals announced they would buy Honda’s 26 per cent stake in the company. Since then it has expanded into several markets in South America and South-East Asia. Last year it announced construction of overseas assembly plants in Colombia and Bangladesh. While the company has decided to establish wholly-owned subsidiary in the US, Hero MotoCorp is also reportedly planning to build plants in Argentina and Brazil and start sales in Europe by 2016.