Hero Motors and Yamaha Motor Co. Announce Joint Venture to Create an E-Cycle Drive Unit Manufacturing Company
New Delhi, 26th November 2021: Leading automotive component manufacturer Hero Motors and Yamaha Motor Co. (Japan) today announced they have entered into an agreement to create a global E-Cycle Drive Unit company with robust product portfolio. The Boards of Directors of both companies have approved the transaction under which a manufacturing unit will be setup in India to manufacture E-Cycle drive motors for the global markets. The joint venture is the next step in the strategic alliance forged between Hero and Yamaha in September 2019 to work together in the E-Cycle product segment.
“We are pleased to announce this new joint venture for E-Cycle drive unit in partnership with the leading global drive unit manufacturer, Yamaha”, stated Pankaj Munjal, Chairman & Managing Director at Hero Motors Company (HMC) Group.
“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,” he continued. “HMC envisions India to be a global manufacturing hub for E-Cycles and the drive systems. The astounding growth of HMC’s international arm Hero International in this year has pushed up the Group’s revenue forecast from e-bicycles at just above ₹1500 Crore 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% CAGR, probably the fastest across consumer product categories, and Hero is now well-poised to acquire a major chunk of this with key elements of the value chain in place – 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 expansion to Europe through Hero International and setting up of world-class industrial park in, Hi-Tech Cycle Valley, Punjab.” adds Mr. Munjal.
The joint venture will setup the manufacturing facility in Hero E-Cycle Valley, Punjab and expects to start production of the first model by November 2022. It will have a capacity of 1 million drive units in the future. In addition to the Hero and Yamaha branded E-Cycles, the joint venture will use the OEM networks of Hero and Yamaha for the sale of drive units in global markets.
About Hero Motors
Hero Motors is part of the HMC Group (www.hmcworld.co.in), a diversified conglomerate with interests in automotive components, e-mobility, cycles, real estate, and premium retail. The HMC Group has a $1.2bn asset base and employs over 7,500 people across the globe within cycle giant Hero Cycles, auto parts manufacturing companies ZF Hero Chassis Systems Pvt. Ltd and Munjal Kiriu Industries Pvt. Ltd., hospitality arm Munjal Hospitality, and luxury home décor products company Oma Living.
HMC’s bicycles arm has a manufacturing capacity of 6 million bicycles per year and a network of plants located in Punjab’s Ludhiana, UP’s Ghaziabad, and Bihar’s Bihta. It also has a state-of-the-art manufacturing facility in Sri Lanka as well as a Design Centre in the UK. It also owns UK-based Insync, Germany-based HNF, and Firefox Bikes in India. The group has recently expanded its manufacturing operations with the setup of world-class industrial park in, Hi-Tech Cycle Valley, Punjab that will add 4 million units capacity, including 0.5 million units of E-Cycles.
About Yamaha Motor Co.
Yamaha Motor Co., Ltd is a world-leading producer of motorcycles, marine products, power products, industrial robots, and electrically power-assisted bicycle, etc. The company’s diverse business and wide variety of products are built around its proprietary technologies focused on small engines, chassis & hull, electronic control and robotics. Yamaha pioneered the E-Cycle center drive in 1993 and has been continuously refining their industry-leading technology ever since.