Hero Motor and Yamaha Motor Co. (Japan) have announced to enter into an agreement to jointly create a global E-Cycle drive unit company.
According to reports, both the companies’ Board of Directors has approved the transaction under which a manufacturing unit will be set up in India to manufacture E-Cycle drive motors for the global markets.
The joint venture agreement between the companies is scheduled to be commissioned in India sometime next year, which will cater to global markets as well.
According to Hero Motor, the joint venture deal is the next step for the Hero-Yamaha alliance, which was made in 2019 for working together in the electric bicycle segment.
The upcoming company will build the manufacturing facility in Hero E-Cycle Valley, Punjab, and begin production of the first model, which is expected to start by November 2022. The company has targeted annual capacity for the plant to be at one million drive units to begin with.
The joint venture in addition to the Hero and Yamaha branded E-Cycles will also use the OEM networks of Hero and Yamaha for the sale of drive units in global markets.
Hero Motors Company (HMC) Group, Chairman and Managing Director, Pankaj Munjal, commented that their companies’ combined strengths – Hero’s expertise in value-focused manufacturing and Yamaha’s technical expertise, global reach and access to future technology – are a strong recipe for success.
Munjal further added that this joint venture is a major component of their ambition to be the first fully integrated player globally in the E-Cycles segment. While it also adds strongly to the company’s initiatives such as expansion to Europe through Hero International and setting up of world-class industrial park in Hi-Tech Cycle Valley, in Punjab.
The manufacturing facility under the new joint venture will not only manufacture electric bicycles which will carry Yamaha and Hero branding but also leverage the network of both companies to further augment the sales of electric drive units in global markets.
Yamaha Motor had just recently announced the launch of its two hybrid scooter models, Ray ZR 125Fi Hybrid and Street Rally 125 Fi Hybrid in the country.