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By MT Bureau| Nov 26, 2021

Hero Motors And Yamaha Motor Company Join Hands

Hero Motors has entered into a Joint Venture (JV) with Yamaha Motor Co (Japan) to manufacture electric cycle drive units in India. The JV will set up a production facility in Hero’s Hi-Tech Cycle Valley, Punjab. It is expected to be commissioned by November 2022 and have the capacity to manufacture one million drive units.

The two companies, having an association since 2019, will use their OEM networks for the sale of drive units globally.

Pankaj Munjal, Chairman and Managing Director, Hero Motors Company (HMC) Group, said, “We are pleased to announce this new joint venture for the e-cycle drive unit in partnership with Yamaha. Our combined strengths – Hero’s expertise in value-focused manufacturing and Yamaha’s technical expertise, global reach and access to future technology – are a potent recipe for success.”

“HMC envisions India to be a global manufacturing hub for e-cycles and drive systems. The astounding growth of HMC’s international arm Hero International this year has pushed up the Group’s revenue forecast from e-bicycles at just above INR 15 billion for FY23. This is primarily driven by HMC’s investments in EU brands, distribution, R&D and acquisitions. The EU e-bicycle market is growing by 25 percent CAGR,

probably the fastest across consumer product categories. Hero is now well-poised to acquire a major chunk of this with key elements of the value chain in place like R&D, Manufacturing, Brands, Distribution and After-Sales Service. This joint venture is a major component of our ambition to be the first fully integrated player globally in the e-cycles segment and adds strongly to our initiatives like the expansion to Europe through Hero International and setting up of a world-class industrial park in Hi-Tech Cycle Valley, Punjab,” Munjal mentioned. (MT)

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