News: Indian automaker Hero MotoCorp has expanded its operations to Peru, the largest motorcycle market in South America, CarTrade reports. The deal, conducted in partnership with Peruvian auto dealer MOTOCORP S.A.C, is part of Hero's plans to extend its bike business to around 50 countries by 2020. Hero has up to 85 car dealerships in Peru and the Indian carmaker has reportedly launched up to seven two-wheelers, including the Pleasure and Passion Pro, in the country. With growth remaining sluggish in India's auto market in 2013, Hero sees Peru as an opportunity to break new international markets and sell more than 100mn bikes by 2020.
BMI View: BMI believes that the key factors that will support healthy vehicle sales in Peru moving into 2013 are the continuation of strong private consumption growth, healthy per capita economic growth, the strong sol currency, and the greater availability of credit through the increased affordability and provision of loans to many Peruvians. This view is continuing to play out, and has partly informed our bullish outlook for vehicle sales.