Hero, Magneti in fuelling systems JV

Hero MotoCorp, the biggest two-wheeler manufacturer, has hit it off with Milan-headquartered Magneti Marelli (MM) by announcing a joint venture to develop and manufacture new generation fuelling systems.      

Hero MotoCorp will hold 60% in the new entity, HMC-MM Auto Ltd (HMCL), while the rest will be with Magneti Marelli. The two are looking to invest $8.5 million in the JV over a 3-year period, while the total investment on the table for the next 10 years is likely to be around $27 million, a company statement read.

This marks Hero’s first JV since it started charting its own course more than two years ago. HeroMotoCorp has already forged partnerships with the US-based Erik Buell Racing and Austria’s AVL to enhance its R&D capabilities. It has also roped in Italian two-wheeler design firm Engines Engineering for designing its next-generation product line-up.

“This is our first JV since charting our solo journey and as an immediate opportunity and focus area, the new firm shall be taking up development and manufacturing of next-generation fuelling systems. This is one of the most important areas in various technologies involved in the making of better fuel-efficient, environment-friendly modern engines,” said Pawan Munjal (pictured), MD & CEO, Hero MotoCorp.

“The aim is to partner with Hero MotoCorp in order to equip with advanced Powertrain solutions in all Hero motorcycles and scooters,” chipped in Eugenio Razelli, CEO, Magneti Marelli.