Hero MotoCorp, country’s largest two-wheeler maker, has formed a joint venture (JV) with Milan-headquartered Magneti Marelli (MM) to develop and manufacture new generation fuelling systems. The new entity to be called HMC-MM Auto is HMCL's first joint venture since commenting its solo journey over two years ago. This joint venture will bring key engine-related technology within the Hero Group, thereby reducing dependence on external vendors.
HMCL will hold majority stake of 60% in the new company while Magneti Marelli will hold the rest 40%. There will be a total equity injection of $8.5 million as envisaged by Hero Motocorp & Magneti Marelli in a ratio of 60:40 over a three-year period. The total investment is likely to be around USD 27 million over the next 10-year period.
HMC-MM Auto will also develop its own autonomous development centre. As Hero expands its global footprint at a fast pace, this will enable the company to develop products featuring appropriate technology for different customers in geographies across the world.
Hero MotoCorp is the World’s single largest two-wheeler motorcycle company. Honda Motor Company of Japan and the Hero Group entered a joint venture to setup Hero Honda Motors in 1984. Hero Honda Motors changed its name to Hero MotoCorp following the exit of its erstwhile Japanese promoter, Honda, from the company.
Company Name | CMP |
---|---|
Bajaj Auto | 8946.30 |
Hero MotoCorp | 5127.45 |
TVS Motor | 2172.00 |
Eicher Motors | 4853.90 |
Atul Auto | 541.30 |
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