Indian two-wheeler major Hero MotoCorp is eyeing sales of a million units in overseas markets in the next five-six years, by when it sees total sales touching 10 million units and turnover US$ 10 billion (from about US$ 4 billion now).

The world's largest two-wheeler maker is planning to achieve these ambitious targets by getting aggressive on research & development, expanding capacities through two new manufacturing plants, increasing its share in the hinterland even as it eyes export markets in a big way.

For this fiscal, its capital expenditure remains a modest Rs. 6-9 billion (US$ 130-195 million), but will increase going forward as new capacities are added, senior vice-president Anil Dua said. The company's existing capacity of 6.5 million units is enough for this fiscal and part of next fiscal, too, he said. The company is setting up two new facilities in the southern and western regions of the country.

Dua said a cross-functional team is already in place for identifying potential markets overseas for Hero products and exports would become a large part of the company's strategy going forward.

Earlier, its former joint venture partner, Honda, did not encourage exports so the company could never develop this area.

Not just overseas push, Hero is also going all out to woo the rural consumer. Already, 45% of its sales come from the hinterland and this ratio should increase going forward, Dua said. "We now cover one lakh (100,000) villages, have more than 1,000 'service har jagah' ('service everywhere') doorstep service outlets across India's villages and small towns, This effort at rural penetration will intensify".

Dismissing apprehensions of Hero MotoCorp's market share sliding when new entrants (including Honda Motorcycle & Scooter India) launch entry-level motorcycles, Dua said the company continues to be a strong player in each category of the bike market. It is also expanding its scooter business to make 50,000 units now against 35,000 earlier and adding a new scooter model - the Maestro - to the existing Pleasure.

Asked if the company will drop the name Honda from its existing products, he said, "Whatever new announcement that we make of face-lift on existing products, it will be under the Hero name." Last month the company had unveiled its new brand identity. According to an agreement signed between the two erstwhile partners, Hero can use the Honda brand till 2014.

On the growth prospects in this fiscal, Dua said the industry has been growing around 18% while his firm has been registering sales of 21% and hopes to maintain the momentum. "The 25% growth witnessed by the industry last fiscal is not sustainable and the projection is of about 15% growth this fiscal. Hero will be above the industry growth," he said. The company expects good sales during the festive season and is not planning any price hike in the near future.