Hero MotoCorp Ltd (HMCL) has formed a Joint Venture (JV) with Milan-headquartered Magneti Marelli (MM) to develop and manufacture new generation fuelling systems.
The new entity – to be called HMC-MM Auto Ltd – is HMCL’s first joint venture since commencing its solo journey a little over two years ago. HMCL will hold majority stake of 60 per cent in the new company while Magneti Marelli will hold the rest 40 per cent. There will be a total equity injection of US$ 8.5 million as envisaged by Hero MotoCorp & Magneti Marelli in a ratio of 60:40 over a three-year period. The total investment is likely to be around US$27 million over the next 10-year period.
HMC-MM Auto Ltd will also develop its own autonomous Development Centre. As Hero expands its global footprint at a fast pace, this will enable the company to develop products featuring appropriate technology for different customers in geographies across the world.
HMC-MM Auto Ltd will help build Electronic Fuel Injection (EFI) systems which will offer distinct advantages to the engines used in Hero’s two-wheelers such as adaptability to different working climates, altitudes, improved performance and fuel efficiency, environmental regulations and gasoline blends. Additional functionality such as Immobilisers, traction and slip control, multi map, flexi fuel and multi fuel management etc. will also be available with the above technology.
Above all, the joint venture will bring key engine-related technology within the Hero Group, thereby reducing dependence on external vendors.