Two-wheeler industry leader Hero MotoCorp is in the final stages of acquiring land for a fifth production unit at Halol, Gujarat. Hero recently commenced construction of its fourth plant for motorcycles and scooters in Rajasthan, which will be operational by 2014.
Around 200 acres have been allotted to Hero for the Halol plant, and the company is on its way to taking possession of the same. Construction of the plant is set to begin in the coming months and the new plant is expected to be operational by the second quarter of 2014. Hero has invested Rs 1,100 crores in the new project, and annual capacity will be 12 lakh units, going up to 18 lakh units in the second phase.
Hero has been bullish in its approach to maintaining market leadership since parting ways with erstwhile partner Honda, investing Rs 2,575 crores in three plants. The two-wheeler giant is speeding up its land acquisition process despite tensions over labour troubles having afflicted Hero’s existing Gurgaon production unit.