Automotive component manufacturer Hero Motors and Yamaha Motor Co. (Japan) on Thursday said they had entered into an agreement to create a global E-Cycle drive unit company.
“The Boards of Directors of both companies have approved the transaction under which a manufacturing unit will be set up in India to manufacture E-Cycle drive motors for the global markets,” the firms said in a joint release.
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, the companies said.
The joint venture will set up the manufacturing facility in Hero E-Cycle Valley, Punjab, and production of the first model is expected to start by November 2022. The targeted capacity for the plant is one million drive units. “In addition to the Hero and Yamaha branded E-Cycles, the joint venture will use the OEM networks of Hero and Yamaha for the sale of drive units in global markets,” the release added.
