Hero MotoCorp ropes in new technology partner
New Delhi, Sep 6 (IANS) Two-wheeler major Hero MotoCorp has roped in a third technological partner to develop internal capabilities in design and engines after the firm's break up with Honda, a top company official said here Thursday.
"We have signed agreement with a new partner two weeks ago and further details will be announced soon. This partner will help us with end-to-end technology for our entire two-wheeler range," Pawan Munjal, managing director and chief executive at Hero MotoCorp told reporters at the annual summit of Society of Indian Automobile Manufacturers (SIAM).
Munjal, however, did not divulge the name of the third technology alliance partner.
The planned transition in technology may happen before June, 2014, the scheduled deadline for using Honda's technology.
The new partnership will allow the company to replace Honda's technologies with its own on its current range of two-wheelers.
Hero MotoCorp currently has agreements with US-based super bike and engine maker Erik Buell Racing (EBR) and Austria-based AVL.
According to Munjal, the company will also buy minority equity stakes in each of the three companies ensuring a better grip on its partners.
The company will first buy minority equity stake in its first technology partner EBR and then in AVL.
The stake in these companies may be eventually hiked to a majority for total control.
However, the company said that it was looking for more technology alliances in design and engines.
"We are still in touch with other companies (for partnerships)," Munjal said.
Technology alliances will allow the company to shore up its international operations, which require different set of modifications in the motorcycles than the ones sold in India.
The company is currently present in Sri Lanka, Bangladesh and Nepal and has started CKD (completely knocked down) assembly units in these countries and plans to start export to new destinations in southeast Asia, Africa and South and Central American countries.
"We will also start exporting to Myanmar, Gautemala, Kenya, Nigeria and Columbia in next six months. We are modelling some of our products to suit requirements in these markets," Munjal said.
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