Hero MotoCorp forms joint venture with Magneti Marelli

Hero MotoCorp has formed a joint venture with the Italy-based Magneti Marelli to develop and sell next generation powertrains. The joint venture has been named HMC-MM Auto Ltd and both the companies will invest USD 27 million (Rs 168 crore) over the next 10 years.

Hero MotoCorp will hold 60 per cent stake in HMC-MM Auto Ltd and the rest will be owned by Magneti Marelli. The JV is targeting sales of over USD 100 million (Rs 620 crore) in the next five years and aims to double that by 2024. They are also planning to develop a new electronic fuel injection system that will help improve the fuel efficiency of its bikes. The firm will also supply its products to other two-wheeler makers in the country.

Hero MotoCorp products are known for their fuel efficiency and with the introduction of the new electronic fuel injection system; they are trying to take its USP to the next level. Currently, only the Karizma ZMR and the Glamour have the fuel-injected systems but we can expect Hero’s upcoming launches to get one.

“This is one of the most important areas in various technologies involved in making of better fuel-efficient, environment-friendly modern engines. This development will help the cause of Hero engines, and improve the drivability of our products and meet the environmental regulations," said Pawan Munjal, CEO and MD, Hero MotoCorp.