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.
