Hero MotoCorp has tied up with a third technology partner to boost its research and development (R&D) efforts – a European firm with “end-to-end” styling and engineering capabilities.
Pawan Munjal, MD & CEO, said more partners may also be roped in later. “We have already signed the agreement two weeks back, but we will announce the name in some days. There is every possibility that we will become financially involved in them,” he said.
The other two tie-ups, with US-based EBR and Austrian engine specialist, AVL, were also entered into this year. It will now look to buy a minority stake in the firms, starting with EBR, through which it will “create an extended arm of its own R&D centre (at Rajasthan),” Munjal said.
Global Assembly Plants
Hero plans to create production hubs at different locations around the world. In all, four assembly plants are planned outside India, including the Bangladesh factory that started six months back.
Columbia will get an assembly plant to supply to South America, while either Nigeria or Kenya will set up a plant to supply the rest of Africa with Hero’s two-wheelers. Both Brazil and Sri Lanka are also expected to get their own assembly plants.
Additionally, the company will enter Guatemala in October, followed by Kenya.
Portfolio Replacement
Munjal said Hero’s entire portfolio would be replaced by Hero-developed models by 2015, though the brand names such as ‘Splendor’ and ‘Passion’ would remain.
The company, which broke up its 27-year-old partnership with Honda in March last year, can continue using the latter’s technology till June 2014.