Hero to introduce EFI in its bikes in India

The world's largest two-wheeler manufacturer Hero MotoCorp (HMCL) has formed a new joint venture with Magneti Marelli to develop new advance fueling systems for its entire bike line-up. Magneti Marelli designs and produces advanced systems and components for the automotive industry like Electronic Systems, Lighting; Powertrain, Suspension Systems and Shock Absorbers, Exhaust Systems, Aftermarket Parts & Services, Plastic Components and Modules. It has 83 production units, 12 R&D centres and 26 application centres in 19 countries and supplies to all leading automobile and two-wheeler makers in Europe, North and South America and the Far East.

Managing Director & Chief Executive Officer, Hero MotoCorp, Mr. Pawan Munjal said, “It has always been my firm belief that the path to technological excellence is through self-sufficiency and independence. Therefore, over the past year, we have been forging multiple alliances with globally-renowned design and technology firms, and the newly-formed partnership with Magneti Marelli is yet another strategic move in that direction. This is our first Joint Venture since charting our solo journey and as an immediate opportunity and focus area, the new firm shall be taking up development and manufacturing of next-generation Fueling Systems. This is one of the most important areas in various technologies involved in making of better fuel-efficient, environment friendly modern engines. Fuel technology has undergone a major shift over the past two decades. The advances in electronics and control technology, which have become smarter and real time, have given a very useful tool in the hands of engine designers to precisely optimize fuel supply for control of output performance, emissions, fuel consumption and usage of certain fuel blends.”

CEO, Magneti Marelli, Mr. Eugenio Razelli said, “The scope of this agreement is quite significant for Magneti Marelli as our partner in this JV is the world’s largest manufacturer of two-wheelers. The aim is to partner with Hero MotoCorp in order to equip with advanced Powertrain solutions all Hero motorcycles and scooters, and indeed most two-wheelers circulating in a country where current sales are already close to 15 million units per year. We are also proud to be able to contribute to initiating a technological revolution in favour of sustainable mobility for two-wheeled vehicles as well, in one of the most important markets in the world.”

The new entity – to be called HMC-MM Auto Ltd - is HMCL’s first joint venture since commencing its solo journey a little over two years ago. HMCL will hold majority stake of 60 per cent in the new company while Magneti Marelli will hold the rest 40 per cent. There will be a total equity injection of US$ 8.5 million as envisaged by Hero MotoCorp & Magneti Marelli in a ratio of 60:40 over a three-year period. The total investment is likely to be around US$27 million over the next 10-year period.

HMC-MM Auto Ltd will also develop its own autonomous Development Centre. As Hero expands its global footprint at a fast pace, this will enable the company to develop products featuring appropriate technology for different customers in geographies across the world.

HMC-MM Auto Ltd will help build Electronic Fuel Injection (EFI) systems which will offer distinct advantages to the engines used in Hero’s two-wheelers such as adaptability to different working climates, altitudes, improved performance and fuel efficiency, environmental regulations and gasoline blends. Additional functionality such as Immobilisers, traction and slip control, multi map, flexi fuel and multi fuel management etc. will also be available with the above technology.

This joint venture will help the company to make its product-line up compatible to the stricter 2015 Indian two-wheeler emission norms.