Hero MotoCorp announces joint venture with Italian electronics technology giant Magneti Marelli for electronics technology development and production for Hero bikes. Soon after separation from Honda, Hero joined hands with US based racing company Eric Buell and bought 49.2% of stakes in racing company. With Eric Buell’s racing technology with top notch European electronics, Hero hopes to brighten the future of their bikes.
Despite Honda wanting to go alone in India, the renamed Hero MotoCorp retained some licensing rights to use Honda technology until 2014. Just before this technology licensing ends, we have news that Hero MotoCorp and Magneti Marelli will see creation of a new company: HMC-MM Auto Ltd, which Hero MotoCorp owns a 60% of, while Magneti Marelli owns the remaining 40%.
With EMI-EMC norms getting stringent for Indian Automotive Industry from October 2013, Hero MotoCorp will compete with Honda and Bajaj in terms of technology. This venture will also provide services to other Indian brands as well. This will give a major chunk of pie to HMC-MM joint venture. JV plans to invest $8.5 million in the next three years and $27 million till 2024. One of such JV, Bajaj and KTM is the most successful and Hero wants to follow similar path but in it’s own way.
Hero has also invested close to Rs.400 crore to set up a state-of-the-art R&D center at Kukas near Jaipur. Few months ago, the company showcased 15 products and announced to launch 35 new products in Indian market. Hero will display its upcoming products in 2014 Auto Expo. Hero has not only become Hero MotoCorp, but it has also become the largest motorcycle manufacturer in India with slight affect due to Honda separation. And with the Indian market gaining more and more momentum, the investments made by Hero will start paying off soon.