Hero, Yamaha join hands to make E-cycle drive units

This joint venture is a major component of the company’s ambition to be the first fully integrated player globally in the E-Cycles segment, Pankaj Munjal, CMD, Hero Motors Company, has said

Ludhiana Hero Motors and Yamaha Motor Co (Japan) have entered into an agreement to create a global E-Cycle (electric) Drive Unit company at the Hero E-Cycle Valley, Dhanansu, in the district. The manufacturing facility of the joint venture will be set at the E-Cycle Valley, with production expected to start by November 2022; the unit will ultimately have the capacity of 1 million drive units, also known as power assist systems, that will be used to power the cycles.

The manufacturing facility of the joint venture will be set at the E-Cycle Valley; in addition to Hero and Yamaha branded E-Cycles, OEMs will also be used for sales. (Photo courtesy Mint)

In addition to Hero and Yamaha branded E-Cycles, the joint venture will use the OEM (original equipment manufacturer) networks of Hero and Yamaha for sale in global markets.

The Boards of Directors of both companies have approved the transaction under which a manufacturing unit will be setup in India to manufacture E-Cycle drive motors for the global markets. The joint venture is the next step in the strategic alliance forged between Hero and Yamaha in September 2019 to work together in the E-Cycle product segment, said Pankaj Munjal, chairman and managing director, Hero Motors Company.

“This joint venture is a major component of our ambition to be the first fully integrated player globally in the E-Cycles segment and adds strongly to our initiatives like expansion to Europe through Hero International and setting up of a world-class industrial park in Hi-Tech Cycle Valley, Punjab,” added Munjal.