Leading automotive component manufacturers Hero Motors and Yamaha Motor Company (Japan) announced that they have signed an agreement to create a global e-bicycle drive unit company with a strong product portfolio. The Board of Directors of both the companies have approved the transaction under which a manufacturing unit will be set up in India to manufacture e-cycle drive motors for global markets. It is worth noting that Hero and Yamaha entered into a strategic alliance in September 2019 to work together in the e-cycle product segment, and this joint venture is a continuation of that alliance.
Pankaj Munjal, Managing Director and Chairman, Hero Motors Company (HMC) Group, said, “We are delighted to announce this new joint venture for e-cycle drive units in partnership with leading global drive unit manufacturer Yamaha. “
Elaborating on this, Munjal said, “Our combined strengths are Hero’s expertise in value-based manufacturing, Yamaha’s technical expertise, global reach and futuristic technology. Sees as a global manufacturing hub for bicycles and drive systems, this year’s amazing growth through the sale of e-cycles by Hero International, the international arm of HMC, helped the Hero Group to exceed the Rs 1,500 crore earmarked for FY2023. Higher revenue has been achieved. This has been made possible primarily by HMC’s investments in EU brands, distribution, research and development and acquisitions. The EU e-bicycle market is growing at a CAGR of 25 per cent. This growth Probably the fastest growth is in consumer product categories.
The JV will set up a manufacturing facility at Hero E-Cycle Valley, Punjab. Production of the first model is expected to start by November 2022. It will have a capacity of 1 million drive units in the future. Apart from Hero and Yamaha branded e-cycles, the JV will utilize the OEM network of Hero and Yamaha to sell drive units in global markets.
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