Changing track

New Delhi, Aug. 18: Reeling under the impact of a nine-month slump, domestic automobile majors are moving to greener pastures in Africa and Latin America.

Leading companies, including Hero MotoCorp, Tata Motors, Bajaj Auto, Mahindra & Mahindra, Hindustan Motors and Maruti Suzuki India, are setting up supply chains and manufacturing units in Africa and South America.

Hero MotoCorp, which started to export under the Hero brand name recently, expects to garner 10 per cent of its revenues through exports by 2017. The company plans to enter 50 markets by 2020 and targets 20 manufacturing facilities across the globe and an annual turnover of Rs 60,000 crore.

Hero also plans to set up a facility in Mexico besides an assembly plant in Kenya. It has entered markets such as Guatemala, Salvador, Colombia, Kenya, Burkina Faso, Bangladesh and Nepal. “I am going to Peru next week to launch our products. We will have six assembly facilities spread across Africa, Americas and Asia,” chief executive officer and managing director Pawan Munjal said.

Tata Motors, which has reported a 29.96 per cent decline in vehicle sales at 51,468 units in July against 73,491 units a year ago, is banking on exports to Africa.

The company has invested $700 million in South Africa, which serves as the supply base for the entire region. The company has managed to clinch the top spot and has been crowned the fastest growing car maker in Africa. It also plans to set up an assembly plant in Kenya.

The company’s total passenger vehicle sales in the domestic market stood at 10,824 units in July, down 58.75 per cent from 26,240 units in the same month last year.

Mahindra & Mahindra, which was the market leader in the utility vehicle segment till two months back, sold only 15,531 units in July compared with 22,011 in the year-ago period, a drop of 29 per cent. Its year-to-date sales of utility vehicles fell 9 per cent to 75,754 units.